FX.co ★ UK Business Investment Slumps 2.7% in Q4 2025, Reversing Previous Quarter’s Growth

Business investment in the United Kingdom fell sharply in the fourth quarter of 2025, dropping 2.7% quarter-on-quarter and reversing the 1.6% increase recorded in the third quarter of 2025, according to data updated on 12 February 2026.

The latest figures highlight a clear shift in corporate spending momentum. While the third quarter saw businesses increase investment compared with the previous quarter, the fourth quarter data show a notable retrenchment when measured on the same quarter-over-quarter basis.

The comparison underscores growing caution among UK firms: the “Actual” figure for Q4 2025 reflects a quarter-on-quarter contraction of 2.7%, following the “Previous” quarter’s 1.6% expansion versus the prior period. This swing suggests that whatever factors supported business investment earlier in the year did not carry through to the end of 2025.