UK firms are turning away from US investment, seeing UK and India as top destinations

British business executives are turning away from the United States as an investment destination, with only +2% seeing it as attractive, down from +59% in late 2024. Deloitte’s survey showed a shift in sentiment, with the UK now viewed as a leading global investment destination alongside India.

Inward foreign direct investment in the U.S. fell sharply in early 2025, coinciding with high business uncertainty over President Trump’s tariff plans. Despite this, the U.S. remains more attractive than developed Europe or China, according to Deloitte’s survey.

British company executives reported increased confidence in their own market, with the UK ranking top for investment attractiveness. This renewed confidence, along with a rise in risk appetite, highlights the considerable investment potential the UK offers, according to Deloitte UK’s senior partner.

Market expectations suggest weak economic growth in Britain, posing challenges for finance minister Rachel Reeves, who may raise taxes again in the next budget. Despite subdued optimism, the optimism index ticked up slightly in the latest survey, showing a slight improvement in business confidence.

Read more at Yahoo Finance: UK firms lose taste for US investment, Deloitte survey shows