British businesses are turning away from the United States as a top investment destination, according to a new Deloitte survey released on Monday. Instead, they are seeing more promising

opportunities closer to home.

The survey, which questioned chief financial officers (CFOs) from leading UK companies, found that only a net 2% now view the U.S. as an attractive place to invest—down sharply from 59% in late 2024. This marks a significant decline in sentiment following Donald Trump’s return to the U.S. presidency.

The results align with recent U.S. government data showing a steep drop in foreign direct investment in early 2025, a period marked by uncertainty over Trump’s trade policies and tariff proposals.

In contrast, confidence in the UK as an investment location has risen. Deloitte reported a net 13% of CFOs now see the UK as an appealing destination—up from -12% previously—putting it on par with India at the top of the rankings. The U.S. still outperforms Europe and China, both of which scored negatively in the survey.

“These findings show a notable change in sentiment, with the UK now emerging as a top global investment destination,” said Richard Houston, CEO of Deloitte UK. “The increased confidence and risk appetite among British firms highlights the UK’s strong investment potential.”

Despite the shift in sentiment, the broader economic outlook remains cautious. Deloitte’s business confidence index rose slightly to -11%, up from -14% in April, but still reflects subdued optimism.

In 2023, the UK was the fourth-largest foreign investor in the U.S., with holdings valued at $636 billion, according to U.S. data.

The latest Deloitte survey included responses from 66 senior executives, including CFOs from 37 publicly listed firms representing a combined market capitalization of £386 billion. The survey was conducted between June 16 and June 29. Photo by Philippe Salgarolo, Wikimedia commons.