UK firms lose taste for US investment, Deloitte survey shows

By Andy Bruce

(Reuters) -The attractiveness of the United States as an investment destination has plunged in the eyes of British business executives who now see opportunities closer to home, a survey showed on Monday.

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 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 own market, with the balance for the UK rising to +13% from -12% - ranking top with India for investment attractiveness.

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 UK now viewed as a leading global investment destination," said Richard Houston, senior partner and chief executive of Deloitte UK.

"This renewed confidence, coupled with a rise in risk appetite, is welcome and underscores the considerable investment potential the UK offers."

In 2023, Britain was the fourth-biggest direct investor into the United States by ultimate beneficial owner, with a position of $636 billion, according to official US 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.

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.

Deloitte polled 66 chief financial officers and executives between June 16 and June 29, including 37 listed companies with a combined market value of 386 billion pounds.

(Reporting by Andy Bruce; Editing by Sharon Singleton)