Is UK corporate strength just an illusion?

Official figures showing UK corporates' share of GDP is at its lowest level since 1984 cast doubt on claims that UK plc will drive the economic recovery, Citigroup analysts have suggested.

Citi's Michael Saunders said Office for National Statistics data reveals a complete reversal in the profits recovery seen in 2009-10, despite the strong profit gains being achieved by some major quoted multinationals. By the fourth quarter of 2011, ex-oil and financial corporates' share of UK GDP stood at 14.6% - the lowest level since 1984 and down 18.2% since Q2 2007, according to Citi. Saunders and his team note that the aggregate profits for both manufacturing and non-financial services firms in 2011 fell to the lowest share of GDP since data began in 1997. They expect the figure ...