LONDON (Reuters) - The Bank of England’s network of regional representatives will soon be telling interest rate-setters about a disappointing upturn in business investment, a major business survey suggested on Thursday.
The British Chambers' of Commerce's survey showed investment intentions in the dominant services sector slipping, following a Deloitte survey of bosses last week that showed much the same.
While the BCC's Quarterly Economic Survey showed a small rise in manufacturing investment intentions, this will not be enough to suggest that a solid recovery in investment will help to offset a slowdown in consumer spending - as some BoE officials expect.
Last week, BoE rate-setter Michael Saunders said he was “reasonably confident” that investment, along with exports, would largely offset the slowdown in consumer spending.
BoE Chief Economist Andy Haldane last month said measures of investment were picking up as he said he might back raising interest rates in the next few months, citing a chart of investment measures that included the BCC‘s.
The BCC and Deloitte gauges of investment are good guides for the BoE’s own investment indicator which is compiled by its regional agents who present their findings to members of the Monetary Policy Committee before interest rate decisions.
Reporting by Andy Bruce; Editing by Andrew Heavens