FX.co ★ UK Business Investment Falls Less Than Expected

Business investment in the United Kingdom fell by 2.5% quarter-on-quarter in the three months to December 2025, a slightly smaller decline than the preliminary estimate of 2.7%, but a reversal from the downwardly revised 1.1% increase recorded in the previous quarter. This was the sharpest quarterly contraction since the third quarter of 2023, underscoring a clear loss of momentum in corporate spending. On a yearly basis, business investment rose by 2%, matching the initial estimate, but marking the weakest growth since the second quarter of 2024 and a notable slowdown from the upwardly revised 3.5% expansion in the prior period. At the same time, overall gross fixed capital formation inched up by just 0.2%, down from 1.2% growth previously, as a steep 18.2% decline in transport equipment acted as a significant drag.