According to revised ONS data, UK business investment increased by +1.8% in Q2 2026, revised up from a +1.7% increase in the provisional estimate. This is +5.2% above the level seen in the same quarter a year ago, suggesting that companies are continuing to invest despite the wider economic uncertainty.
Within this, investment in ICT and other machinery and equipment – a category closely linked to demand for machinery, production equipment and industrial technology – has continued to outperform overall business investment. Following a softer and more volatile period during 2023 and 2024, investment in ICT and other machinery and equipment strengthened through 2025 and into 2026, with the latest data showing continued momentum in Q2, which was +9.8% higher than in Q2 2025, while overall business investment in Q2 was +5.2% higher than in Q2 2025.
Over 2025 as a whole, revised data shows that total business investment increased by +3.9%, while investment in ICT and other machinery and equipment rose by a stronger +10.9%.
The Q2 improvement is particularly notable given the wider economic environment. Businesses continue to face uncertainty over economic growth, trade and geopolitical developments, alongside relatively high costs and pressure to improve productivity. Nevertheless, the continued increase in capital spending suggests that companies are investing where they see opportunities to improve efficiency, modernise production and strengthen their competitive position.
Overall, the latest figures strengthen the evidence that the recovery in UK business investment is becoming more established, with machinery and equipment investment showing particularly strong momentum. This is a positive signal for capital equipment markets, although investment remains sensitive to the wider economic outlook and the latest estimates remain subject to further revision.
You can download the ONS Statistical Bulletin on UK Business Investment from their website at https://www.ons.gov.uk/releasecalendar (30th September) or request if from MTA.