FX.co ★ UK Business Investment Returns to Growth in Early 2026 After Late-2025 Slump

Business investment in the United Kingdom edged back into positive territory in the first quarter of 2026, signalling a tentative stabilisation after a sharp contraction at the end of last year. According to the latest data, updated on 14 May 2026, business investment rose 0.7% quarter-over-quarter in Q1 2026.

This follows a steep 2.9% quarter-on-quarter decline in the fourth quarter of 2025, when investment had fallen compared with the previous three-month period. The new figures show that, while the rebound is modest, firms have at least resumed increasing capital spending on a quarterly basis after a period of retrenchment.

The comparison is based on quarter-over-quarter changes, with the current reading reflecting the shift from Q4 2025 to Q1 2026, and the previous reading capturing the move from Q3 to Q4 2025. Investors and policymakers will be watching upcoming releases to see whether the first-quarter uptick marks the start of a sustained recovery in UK business investment.