FTSE lower as ITEM Club claims low business investment is a ‘growth drag’
City Index November 26, 2012 5:15 PM
<p>The FTSE 100 has lost ground as an ITEM Club report indicates low business investment will be a drag on the recovery.</p>
The FTSE 100 is lower in trading this morning (November 26th) as Ernst & Young's ITEM Club published a downbeat report indicating a lack of business investment could stunt the country's economic recovery.
According to the paper, investment by British corporates is still 15 per cent below where it was before the beginning of the financial crisis, which is twice as much as Germany and the US.
The ITEM Club warns that even though companies have improved access to funding, the UK can only expect expansion at a "slow and steady" rate over the coming three years, hampering the overall economic recovery.
Senior economic advisor to the organisation Andrew Goodwin stated: "There is a very real risk that the recovery will continue to disappoint and the government's austerity plan will be knocked further off course."
At 10:40 GMT, the FTSE 100 retreated by 0.4 per cent – or 26.2 points – to an index value of 5792.8 points.
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