Business investment in the United Kingdom remained in negative territory in the first quarter of 2026, but the pace of decline slowed, suggesting early signs of stabilisation in corporate spending. Year-over-year, business investment fell 1.3% in Q1 2026, an improvement from the 1.8% annual drop previously recorded for the same quarter.
Both the current and previous readings refer to year-on-year comparisons, measuring how business investment in the first quarter of 2026 stacks up against the first quarter a year earlier. The latest update, published on 30 June 2026, indicates that while firms are still cutting back, the contraction is becoming less steep, potentially signaling that the worst of the pullback may be passing. Investors and policymakers will now watch subsequent quarters closely to see whether this moderation in decline turns into a sustained recovery in capital spending.
