November 2025
Our community shows softening confidence in the British economy but continued commitment to the UK market
According to our recent Autumn Survey, overall business sentiment remains positive, though the economic environment has become more challenging for some. Currently, 39% of respondents rate their UK operations as performing positively or very positively, 40% describe them as stable, and 21% view them negatively. These figures represent a slight deterioration compared with the spring survey, also resulting in a generally more cautious short-term outlook. Only 14% of firms now expect the UK economy to improve over the next twelve months, while 42% anticipate sluggish performance.
The UK market continues to be a key driver of German investment in the country. However, investment plans within the German-British business community have been somewhat scaled back, with only around one-quarter of companies (down from one-third in spring) planning to expand their activities further in the next twelve months.
A majority of firms (54%) report that they are not currently affected by US trade policies – a slightly higher share than in spring. This may suggest that more companies are now focusing primarily on the British market, with fewer using the UK as an international hub.
By a clear margin, our community believes that the UK Government’s top priority should be to continue improving relations with the European Union. At the same time, measures to strengthen the UK’s regulatory competitiveness remain essential for businesses operating here. On the first front, much progress has been made over the past two years; on the second, more remains to be done. This challenge is not unique to the UK but shared by many other European countries, including Germany. Our hope is that all our governments will learn from one another on how best to reinvigorate economic growth as without renewed growth, more voters may become increasingly disillusioned – something we should all seek to avoid.
Dr Ulrich Hoppe
Director General
German-British Chamber of Industry & Commerce
