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