Business investment in the UK market fell 0.6% in the first three months of 2022, according to the latest figures from the Office for National Statistics.
The statistical body revised its predictions for business investment today, defined as investment in assets by private and public corporations, after previously guiding for a 0.5% decline in the first quarter.
Investment in and by UK businesses is now 9.2% lower than it was in the final three months of 2019, the quarter before the Covid-19 pandemic hit, the ONS said.
Both business investment and combined public and business investment, known as gross fixed capital formation, dipped after the UK left the European single market and customs unit.
Since then both forms of investment have picked up, but the latter has not yet recovered to pre-Covid levels.
Transport equipment, which was affected by the global shortage of semiconductors, remains the weakest asset in terms of returning to pre-pandemic levels, the ONS said.
Investment in IT and communications equipment and machinery fared better, rising 9.6% above the pre-pandemic baseline, coinciding with the availability of temporary tax relief, the ONS said.
The statistics were released just before Shevaun Haviland, director-general of the British Chamber of Commerce (BCC), warned that t time is running out to help the economy grow.
Haviland told the BCC's global annual conference that the government has "until the Autumn budget to reset, rethink and get their house in order".
Rising material costs, supply chain issues and worker shortages are creating a "perfect storm", she said.