UK business investment rebounded strongly in the latest quarter, rising 1.5% quarter-on-quarter after a 1.7% decline previously, an absolute swing of 3.2 percentage points. The move marks a clear turnaround from contraction to expansion, signaling a firmer corporate spending backdrop than in the prior period.
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The 1.5% increase sharply beat the analyst estimate of a 0.3% decline, surprising on the upside and supporting a more constructive view on the UK growth outlook. Equity markets are likely to react positively, with domestic cyclicals, capital goods manufacturers, and business services names set to benefit most from improved investment trends. The impact leans toward a longer-term boost to sentiment and earnings expectations rather than a near-term shift in monetary policy pricing.