UK Plc Poverty of ambition

UK plc is afflicted by a poverty of ambition. Many companies seem to have run out of ideas of how to grow. Capital expenditure among non-financial companies is now just 6% of sales, according to Morgan Stanley – down from a more normal 8%. Many bosses can’t think of anything more interesting to do than hand back cash to investors via dividends and share buybacks. Nearly 70% of earnings are being distributed this way, up from a more normal 50%. «Hang on a second», UK plc might reply. «We are onl...