Our latest Autumn Survey paints a mixed picture of the economic conditions within the German-British business community in the UK. Many companies continue to perform well and pursue opportunities for growth, but pressures are becoming more evident.
While 47% of respondents describe their UK operations as performing positively, the proportion reporting a negative performance has risen from 6% to 18% since the spring of this year. Investment intentions show an even more varied picture, with a slightly increasing number (23%) aiming to expand their activities but others somewhat scaling back their investment plans (10%) or putting them on hold (7%). Employment expectations further underline the pressures our businesses face: although 31% intend to recruit, the share anticipating staff reductions has increased sharply, from 8% to 27%.
However, confidence in the wider UK economy has improved somewhat over the past six months, although businesses remain cautious: only 20% expect economic conditions to improve over the next 12 months, while 30% anticipate a deterioration. This underlines that businesses need greater certainty and a policy environment that supports investment, innovation and recruitment.
The present UK Prime Minister’s priority of having a much closer relationship with Europe is effectively endorsed by 75% of respondents. Reducing barriers to trade, simplifying business mobility and strengthening regulatory cooperation would make a practical difference to companies on both sides of the Channel.
Our survey demonstrates that the appetite to invest and grow remains. Creating the conditions that allow businesses to act on that ambition must now be the focus. As a Chamber, we will continue to voice these priorities to policymakers and champion a closer, more productive partnership between the UK, Germany and the wider EU.
Dr Ulrich Hoppe
Director General
German-British Chamber of Industry & Commerce
