UK Business Investment Revised Slightly Higher

Business investment in the United Kingdom rose by 1.8% quarter-on-quarter in the three months to June 2026, slightly above the preliminary estimate of 1.7% but easing from an upwardly revised 3% gain in the previous quarter. This marked the second consecutive quarterly increase but at a softer pace, reflecting a fragile recovery in corporate spending, with strong investment in ICT equipment and dwellings partly offset by declines in spending on transport equipment. Investment growth in other buildings and structures also eased, while intellectual property products stalled. On an annual basis, business investment grew by 5.2%, sharply exceeding initial estimates of 0.8% and accelerating from a revised 1.3% gain in the preceding period. Meanwhile, overall gross fixed capital formation rose by 0.9% quarter-on-quarter and was up 3.1% compared with the same period a year earlier.

Business investment in the United Kingdom rose by 1.7% quarter-on-quarter in the three months to June 2026, exceeding market expectations of a 0.5% decline and accelerating from 0.9% in the previous period, according to preliminary estimates. This marked the strongest growth since the first quarter of 2025, highlighting a continued recovery in corporate spending. The increase was largely driven by a significant rise in spending on ICT equipment and other machinery and equipment, while investment declined mainly in intellectual property products. On an annual basis, business investment grew 0.8% in the second quarter, rebounding from a 1.3% decline in the fourth quarter. Meanwhile, overall gross fixed capital formation increased by 0.4% quarter-on-quarter and 1.6% year-on-year.

Business investment in the United Kingdom increased by 0.9% quarter-on-quarter in the three months to March 2026, slightly above the preliminary estimate of 0.7% and rebounding from an upwardly revised 3.0% decline in the previous period. While the latest reading pointed to a still-fragile recovery in corporate spending, the improvement was largely driven by a strong rebound in investment in transport equipment, ICT equipment, and other machinery and equipment, alongside increased spending on other buildings and structures. In contrast, investment in intellectual property products declined during the period. On an annual basis, business investment fell by 1.3%, a smaller decline than the preliminary estimate of 1.8%, but a reversal from the 1.8% growth recorded in the three months to December 2025. Meanwhile, overall gross fixed capital formation rose by 0.4% quarter-on-quarter and was up 1.6% compared with the same period a year earlier.