The Office for National Statistics (ONS) has published high-level data for investment for Q1-2025. Total Business Investment was +5.9% higher than in the previous quarter, +8.1% up on a year ago and the rolling 4-quarter trend (effectively an annualized rate) grew by +4.1%. This growth was partly driven by a large increase in imports of aircraft which considered as investment in transport equipment.
The breakdown by industry group won’t be available until the full National Accounts are published at the end of June but we can look at the split by asset type. There are five categories, of which “ICT equipment & other machinery & equipment” (ICT&OM) is the most relevant to us – the other headings are transport equipment (which includes new aircraft – see introduction), dwellings, other buildings & structures and intellectual property products.
Capital expenditure in ICT&OM in the 1st quarter of 2025 was +8.0% higher than in the previous period, +4.2% up on a year earlier and the rolling 4-quarter trend grew by +1.5%. In the 1st quarter of 2025, spending in this category accounted for 30.4% of total business investment – this is the highest ratio for a year.
Note that the data quoted in this note is based on chain-linked volume measures that are seasonally adjusted.
You can download the ONS Statistical Bulletin on productivity from their website at https://www.ons.gov.uk/releasecalendar (15 May) or request if from MTA.