Capital to Labour Rates

2.78 Although it is difficult to undertake an analysis of total capital stock, data availability from the Annual Business Inquiry enable a review of regional inward capital investment flows. Annual capital investment to labour cost ratios show that the South West has matched or outperformed the English average since 1998 (earliest data). Investment grew relatively strongly in 1998 to 2000 but declined to 2004 (latest).

Figure 2.12 Annual Capital Expenditure as a Proportion of Labour Costs 1998 to 2004, percentages (Popup full image) 
Fig 2.12 Annual Capital Expenditure as a Proportion of Labour Costs 1998 to 2004, percentages.pdf

2.79 In the period 1998 to 2004, the South West's growth in capital expenditure was 5%. Only the East Midlands and Yorkshire and Humberside experienced higher rates of growth, with many regions seeing a decline. As a result, the South West increased its national share of capital expenditure from 7.4% to 8.2%.