Explaining weak investment and strong employment

The current divergence between weak business investment growth and strong employment growth won’t last as it’s largely due to the uncertainty caused by Brexit. If there’s a no deal Brexit, both will weaken in tandem. If there is a Brexit deal (either before or after a short delay), the two should converge as business investment rebounds and employment growth eases.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.