Business investment by UK firms is expected to slow over the next 12 months – but not by a lot.
The Bank of England said a survey carried out by its regional agents pointed to broadly stable or slightly lower investment spending over the coming year.
Uncertainty around future demand for goods and trading arrangements as the UK begins the formal process of exiting the European Union is expected to "drag" on spending.
The Bank said:
Overall, firms in the survey reported expectations of broadly stable or slightly lower investment spending in the year ahead, after quite a significant increase in investment over the past year.
Across sectors, expectations for investment spending growth in the coming twelve months were most negative for construction and business services, particularly among financial services companies.
Expectations among manufacturing and consumer services companies were for broadly flat investment. By type of capital asset, investment plans were weakest for buildings and structures, which the Bank said could explain the cautious outlook among construction firms.
The BoE has previously said it expects the uncertainty triggered by the Brexit vote in June to weigh on business investment, slowing overall British economic growth.
The survey covered around 340 businesses, accounting for 330,000 employees, and £8.6bn of capital spending. The survey results were weighted by employment.