The Office for National Statistics said investment fell 1.3 percent in the first quarter. However, the annual growth rate was 9.6 percent, albeit down from an eight-year high in the fourth quarter of 2006.
The fall was led by weaker investment in private sector services and construction. Investment in private sector manufacturing continued to rise, however.
Analysts were reluctant to read too much into the figures, noting the series can be volatile and subject to hefty revisions.
“The figures are weaker than expected but business investment has been going like a train for the past year and one decline does not necessarily point to a weakening trend,” said Philip Shaw, chief economist at Investec.
Business2 days ago