StatisticsShow Weak Recovery in Business Investment

The Institute of Directors (IoD) said todayit was not surprised by new statistics showing UK business investment remainedweak in the third quarter.

The IoD said it had consistently argued therewould not be a strong cyclical recovery in UK business investment in 2003, andforecasts that business investment will rise by just 1% in 2003, followed by3.5% growth in 2004.

Commenting on the latest figures, GraemeLeach, Chief Economist at the IoD said:

The new figures are very interesting. Theyshow that despite the positive influence of the IT replacement cycle, improvedcorporate finances and confidence, companies remain cautious. Partly this isbecause theyre waiting to see if the global recovery will be sustained. But,we also believe that concerns over pension fund shortfalls are curtailinginvestment plans. Consequently the IoD expects business investment growth willaccelerate in 2004, but not to the extent seen in previous cyclicalrecoveries."

Ends 25.11.03 No.210

Contact Points:

Richard Taylor, PressOfficer, tel. 020 7451 3264

Mobile and out of hours. 07721 734886

David Marshall,Director of Public Affairs, tel: 020 7451 3263

mobile and outof hours: 07764 883420

Email. press@iod.com

Web. www.iod.com

Notesto editors

1. The latest figures onbusiness investment in the UK can be found at http://www.statistics.gov.uk/

2. The Institute ofDirectors is a non-party political independent organisation with around 55,000members. In addition to its wide range of business services, the IoD providesan effective voice to represent the interests of its members to government andkey opinion-formers. It also brings the experience of business leaders to bearon the conduct of public affairs