Business investment in private sector manufacturing has continued to increase and was £260million up in the first quarter of this year compared with the same period last year at £3.2billion.

Construction saw a massive 32% increase in investment in the first quarter compared with the first quarter of last year as companies bought what they need to meet the 11.2% increase in construction orders (see 'Construction orders increase 11.2%').

The figures, released today (27 March) by the Office for National Statistics show the spending on assets such as buildings, vehicles and machinery.

While companies are still prudently holding on to cash, they are beginning to spend more on the factors of production and distribution they need to grow, which is another good sign for the future. Business investment in the UK across the board increased by 4.9% last year, compared with an increase of 3.1% in 2011 and a small fall in 2010.