UK business investment increased by +0.7% in Quarter 1 2026 and is -1.8% below the level seen in the same quarter in 2025.
Within this, investment in “ICT & other machinery equipment” – a category closely linked to demand for machinery, production equipment and industrial technology – has outperformed overall business investment for the past five to six quarters.
Following a softer and more volatile period during 2023–24, investment in “ICT & other machinery equipment” strengthened further into early 2026. Over 2025 as a whole, total business investment increased by +4.3%, while investment in “ICT & other machinery equipment” rose by a stronger +7.0%. On a rolling four-quarter basis, growth rates stood at +2.0% and +5.6% respectively in Q1 2026.
The share of total business investment accounted for by “ICT & other machinery equipment” has also edged higher, reaching 26.8% in Q1 2026 – its highest level since Q1 2023. This suggests that machinery and technology-related investment has remained relatively resilient despite broader economic uncertainty and weaker manufacturing conditions in some sectors.
The recent improvement in machinery and ICT-related investment trends points to a more supportive environment for machine tool, cutting tool and wider capital equipment demand heading into 2026. Growth in AI-related infrastructure and digital investment is also likely to be contributing to the strength of this category.
You can download the ONS Statistical Bulletin on productivity from their website at https://www.ons.gov.uk/releasecalendar (14th May) or request if from MTA.