Alongside the GDP and manufacturing output data published by the ONS last week, they also released the first estimates for investment in the final quarter of 2025. This showed that total Business Investment was -2.7% lower than in the 3rd period of the year but grew by +3.5% for 2025 as a whole (compared to 2024).
The Office for National Statistics (ONS) does not release the breakdown by industry group until the full National Accounts are published at the end of March 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), dwellings, other buildings & structures and intellectual property products.
It should be noted that as well as machinery of various types, the ICT&OM asset group includes investment in AI and related technologies; this is reflected in the growth of spending on ICT&OM of +2.9% compared to the 3rd quarter and +9.8% for 2025 as a whole. For 2025, ICT&OM accounted for almost 27% of total business investment – this is above the average for the past decade but below the peak share which was recorded in 2022.
The data in this item is all calculated on a seasonally adjusted basis.
You can download the ONS Statistical Bulletin on productivity from their website at https://www.ons.gov.uk/releasecalendar (12 February) or request if from MTA.