KPMG comments on today’s business investment data

Instability and cost choking business investment” says Karl Edge, Head of Private Enterprise at KPMG UK.

Instability and cost choking business investment” says Karl Edge, Head of Private

“A drop in business investment during the last quarter was virtually unavoidable given the matrix of cost rises, consumer spending erosion and a dramatic mini Budget.

“Many business leaders were left with no choice but to hit the pause button on spending plans given both the lack of stability needed to enable them to place bets on the future shape of their enterprise and the fact that for some, funds earmarked for investment are being diverted into meeting the rising costs of simply continuing to trade. Management teams are assessing how much working capital they can afford to carry and the impact of this on their spending plans.

“However, for some, in particular smaller companies, it can only be a pause, not an abandoning of plans, as they are compelled to keep moving forward, with external funding arrangements often dependent on certain investment and growth milestones being hit.  Businesses that can’t stop to take stock may be looking to flex investment actions, for example filling skills gaps with temporary rather than permanent resource (suggested by KPMG & REC Report on Jobs 10 Nov '22).”




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About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 15,300 partners and staff.  The UK firm recorded a revenue of £2.43 billion in the year ended 30 September 2021.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 145 countries and territories with more than 236,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.

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