U.K. Firms Lose Taste for US Investment

The attractiveness of the United States (U.S.) as an investment destination has plunged in the eyes of British business executives who now see opportunities closer to home, a Deloitte survey showed on Monday, July 7, 2025.
Deloitte's survey of chief financial officers at major British firms showed a net balance of +2% of respondents saw the U.S. as an attractive place to invest, down from +59% in late 2024, shortly before President Donald Trump took office. The survey polled 66 chief financial officers and executives between June 16 and June 29, including 37 listed companies with a combined market value of £386Bn.
The report tallied with official U.S. data last month that showed inward foreign direct investment fell sharply in early 2025, a drop that coincided with high business uncertainty over Trump's tariff plans. By contrast, Deloitte said British company executives warmed to their market, with the balance for the United Kingdom (U.K.) rising to +13% from -12%, ranking top with India for investment attractiveness.
Nonetheless, the U.S. remained more attractive than the rest of developed Europe or China, both of which had negative readings in Deloitte's survey. "These results reveal a shift in sentiment with the U.K. now viewed as a leading global investment destination," said Richard Houston, senior partner and chief executive of Deloitte U.K.
In 2023, Britain was the fourth-biggest direct investor into the United States by ultimate beneficial owner, with a position of $636Bn, according to official U.S. data.
The Deloitte survey showed British executives reported an uptick in business confidence compared with the previous survey published in April. While still subdued, the optimism index ticked up to -11% from -14% in the previous quarter. That said, British business surveys generally point to weak economic growth - a problem for finance minister Rachel Reeves, who is likely to raise taxes again at the next budget, according to market expectations.

(Source: Reuters)