Business Investment in the UK: Revised Figures for January–March 2025
Updated estimates of short-term trends in investment in non-financial assets, including business investment, with detailed asset and sector breakdowns of gross fixed capital formation (GFCF).
Key Highlights
UK business investment rose by 3.9% in Q1 2025 (Jan–Mar), a downward revision from the previously estimated 5.9% increase.
The main drivers of this growth were higher investment in transport equipment and ICT and other machinery, while spending on intellectual property products (IPP) declined.
Compared with Q1 2024, UK business investment is 6.1% higher.
Overall UK economy investment (GFCF), encompassing both business and public sector spending, grew by 2.0% in Q1 2025, revised from an initial 2.9% estimate. This figure is 3.5% above the level seen in the same period last year.
This release includes updated datasets for business investment in Q1 2025.
2. Business and Whole-Economy Investment Data
This bulletin provides the latest revisions for UK business investment and whole-economy investment (GFCF), covering Q1 2025 only.
Figure 1: Both business and GFCF investment reached record levels this quarter.
Seasonally adjusted, chained volume measure, Q1 1997–Q1 2025
Notes:
- Q1 = Jan–Mar, Q2 = Apr–Jun, Q3 = Jul–Sep, Q4 = Oct–Dec.
- UK business investment excludes the 2005 reclassification of British Nuclear Fuels (BNFL).
- Q2 2020 recorded the largest GFCF decline (excluding BNFL reclassification).
- Index reference: Q1 2022 = 100.
Business Investment
Business investment grew by 3.9% in Q1 2025, 6.1% higher than the same quarter last year. Growth was mainly supported by increases in transport equipment, ICT equipment, and other machinery, with a smaller rise in buildings. This was partially offset by a decline in IPP.
Transport equipment growth was primarily due to increased aircraft investment compared to Q4 2024.
Figure 2: Business investment by asset, showing recovery after the previous quarter’s decline.
Whole-Economy Investment
UK GFCF rose 2.0% in Q1 2025, 3.5% above Q1 2024. Growth was largely driven by transport equipment, with smaller contributions from ICT and other machinery, partially offset by declines in IPP and other buildings and transfer costs.
Government investment fell by 1.7%, revised up from a 2.7% decrease, marking the first negative growth since Q1 2024.
3. Revisions to Q1 2025 Data
Business investment:
The Q1 2025 growth estimate was revised down from 5.9% to 3.9%, mainly due to negative adjustments in ICT equipment, other machinery, buildings, and IPP, partially offset by higher transport equipment figures. Revisions incorporate later survey responses and seasonal adjustment updates.
Whole-economy investment:
GFCF growth was revised from 2.9% to 2.0%, reflecting downward adjustments in ICT, machinery, buildings, transfer costs, and IPP, with upward revisions to transport equipment.
Figure 3: Revisions to GFCF growth by asset in Q1 2025.
4. International Comparison: G7 Nations
Data from the OECD show UK whole-economy investment (GFCF) as 18.2% of GDP in Q1 2025—the lowest among G7 countries.
Figure 4: G7 GFCF as a percentage of GDP, Q1 2022–Q1 2025.
5. Available Datasets
- Business investment by asset (30 June 2025)
- Business investment by industry and asset (30 June 2025)
- GFCF by sector and asset (30 June 2025)
- Quarterly Stocks Survey and Capital Assets Survey (30 June 2025)
- Annual GFCF by sector and asset (01 Nov 2024)
6. Glossary
(Standard definitions of GFCF, IPP, chained volume measure, and seasonal adjustment.)
7. Data Sources and Methodology
All data are in chained volume measures (CVM), removing price effects. QCAS response rate for Q1 2025 was 77.7%. Revisions often reflect delayed reporting of large capital expenditures. Producer price data (PPI, IPI, EPI) used updated chain-linking methods.
These statistics are accredited official statistics, independently reviewed for quality and trustworthiness.
8. Related Publications
- GDP Quarterly National Accounts, UK: Jan–Mar 2025
- National Balance Sheet Estimates for the UK: 2024
- Capital Stocks and Fixed Capital Consumption
- Regional GFCF Estimates by Asset Type
- Investment in Intangible Assets: 2022
- Volume Index Capital Services (VICS), UK
- Guide to GFCF and Business Investment
9. Citation
Office for National Statistics (ONS), 30 June 2025. Business investment in the UK: January to March 2025 revised results.
