Cuts to investment stoke business fears for recovery

Businesses are ditching their investment plans to deal with the pandemic, adding to concerns that Covid-19 is causing lasting damage to the economy.

Companies fear that the hit to sales and employment from the virus will last well into next year, according to a survey by the Bank of England.

The Bank’s monthly poll of chief financial officers at companies of all sizes predicted that average investment would be 32 per cent lower in the three months to the end of September than it would have been otherwise.\Investment is vital for boosting productivity and maintaining the competitiveness of businesses. Cuts could result in a deeper downturn and a slower recovery.

Source: The Times
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