Growth private sector investments less substantial

In October 2011, private sector investments in tangible fixed assets were over 2 percent up on October 2010. The increase was less substantial than in September, when private sector investments were more than 6 percent up on one year previously.

The growth of investments in residential property turned into decline. This could partly be due to the changed VAT rate on residential property renovation projects. The rate was lowered from 19 to 6 percent on 1 October 2010, but on 1 October 2011, the VAT rate was raised back to 19 percent. As a result, small construction companies in particular were confronted with a lower turnover compared with October 2010. In September, these companies had realised much higher turnovers than twelve months previously.

Despite the growth in 2011, private sector investments in tangible fixed assets are as yet on a very low level. In October 2011, private sector investments were still nearly 18 percent down on October 2008.

December’s Investment Radar shows both improvements and deteriorations.

Private sector investments in tangible fixed assets (volume)

More figures can be found on the theme page Enterprises.