The allure of the United States as an investment destination has sharply declined among British business leaders, who now see better opportunities closer to home, according to a Deloitte survey released Monday. Just +2% of British CFOs rated the U.S. attractive for investment, plummeting from +59% in late 2024, shortly before President Donald Trump took office. The findings align with recent U.S. data showing a steep drop in foreign direct investment early this year, amid business uncertainty over Trump’s tariff plans.
Conversely, British executives have become more optimistic about their domestic market. The UK’s investment attractiveness balance jumped to +13% from -12%, ranking it alongside India as the top destination. The U.S. still scored better than developed Europe and China, which both posted negative readings in the survey.
“These results reveal a shift in sentiment with the UK now viewed as a leading global investment destination,” said Richard Houston, senior partner and CEO of Deloitte UK, adding that renewed confidence and rising risk appetite underscore the UK’s investment potential.
Despite the brighter sentiment, broader British business surveys continue to signal weak economic growth — a challenge for finance minister Rachel Reeves, who may face pressure to hike taxes again. Deloitte’s poll, conducted June 16-29, covered 66 CFOs and executives from firms worth a combined £386 billion. Encouragingly, business confidence ticked up slightly, with the optimism index improving to -11% from -14% last quarter.