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Capital Base

 

British companies have a smaller capital base than their international competitors according to a survey published by the Department of Trade and Industry.

 

Gross tangible fixed assets per employee - a measure of capital invested over time - is estimated to be 96,000, some 53,000 below the international average. Capital investment per employee by British companies in 1997 was 9,000, 4,700 less than the average for Europe, North America and Japan.

 

The report highlights the problem of under-investment in the economy - which then impacts on the long-run trend growth for the economy

 

 

E-mail Steve Margetts