UK business investment increased 1.7% quarter on quarter in the three months to June 2026, beating market expectations for a 0.5% decline and accelerating from 0.9% in the previous period. The advance marked the strongest growth since the first quarter of 2025, pointing to a continued recovery in corporate spending. New data also showed Britain's economy grew 0.4% in the second quarter, with the information and communications sector contributing almost half of that expansion. Within the sector, output of computer programming, consultancy and related activities rose 3.7% on the quarter after a 3.8% increase previously, while spending on plant and machinery climbed to £22.1 billion, close to the record high reached in early 2022. The Office for National Statistics said the strength reflected ICT equipment, particularly computer hardware, as well as government spending on weapons systems. British manufacturers also benefited, with output in computing, electronic and optical products rising 10.7% year on year in the second quarter. Economists said the jump in information and communications technology investment suggested the buildout of computing power needed for artificial intelligence was boosting business spending.