Confidence in the US-UK Corridor Takes a Hit - 2025 Transatlantic Confidence Index

• The 5th edition of the annual index from BritishAmerican Business and Bain & Company reveals confidence in the US-UK transatlantic business corridor dropped to its lowest level since the Index began
• UK companies' confidence in the US business environment dropped significantly for the first time
• US investors have concerns about the UK's growth agenda and its policies on tax and regulation

LONDON - September 8, 2025 - The 2025 Transatlantic Confidence Index from BritishAmerican Business (BAB) and Bain & Company, which surveyed 75 leading transatlantic companies, revealed a drop in confidence in the transatlantic economy, with businesses wanting decisive action from both governments on regulation, trade, tax, and industrial strategy.

The Index, which has remained stable at 7.0 - 7.2 out of 10 since 2021, decreased significantly to 6.6 this year. This decline reflects several concerns; US firms are cautious about some of the UK's domestic policies, particularly around tax, while UK investors are uncertain about the US trade position and regulatory predictability.

US companies report slightly lower confidence in the UK

US companies' confidence in doing business in the UK has slipped from 6.6 in 2024 to 6.3 this year - a slight decrease in the score and the lowest since 2021.

Despite the UK government's pledge to implement a pro-growth agenda, concerns around high taxes, rising energy costs, and the perception of onerous regulation may underpin this decline in sentiment. US businesses are calling for changes that foster a more competitive business environment.

Among their top priorities are a flexible, predictable, and business friendly environment, and the full implementation of the new industrial strategy.

There's a more positive perception of the UK's political stability. US companies appear reassured by the Labour government's large majority, and nearly half of US respondents still plan to increase their investment in the UK, while fewer than 20% plan a decrease.

US confidence in the UK-EU relationship reached its highest level since Brexit, increasing for the fourth consecutive year (now 6.6 out of 10). While strengthening relations remained a top priority for approximately one-third of the businesses surveyed, this is the lowest it has ever ranked, suggesting that the improvement in the relationship has been felt by US investors.

UK companies' confidence in the US dropped significantly

The survey concluded that UK companies' confidence in doing business in the US has decreased from 8.4 out of 10 in 2024 to 7.5 in 2025 - whilst this remains a very high level of confidence, it is the lowest recorded since the inception of the survey.

BAB and Bain & Company asked UK companies to rate their confidence in the US's approach to domestic and global economic policy. The average response was 5.4 out of 10, with nearly 75% of respondents giving a score of 6 or lower.

The net attractiveness of the US's capital markets and workforce remained high with each earning +21. However, when it came to views on the rule of law, the net attractiveness dropped from +7 in 2024 to -3 in 2025, and from -1 in 2022 to -21 in 2025 for perceptions of the US's political stability.

UK companies would like the US government to prioritise working with allies on trade. Nearly three quarters of respondents ranked this as a top-three priority. Beyond trade, UK companies would like a predictable and business friendly regulatory environment.

UK companies also expressed the importance of the US maintaining strong economic ties with allies such as the EU, Mexico, and Canada.

Despite the drop in business confidence, more than half of UK respondents still plan to increase their investments in the US.

Duncan Edwards OBE, CEO of BritishAmerican Business said:

"Confidence in the transatlantic corridor has clearly slipped this year, particularly among UK firms, who have been unsettled by tariffs and the direction of US trade policy. Frankly, we would have been surprised if this had not been the case and, in absolute terms, confidence remains high.

"The Economic Prosperity Deal agreed earlier this year provides a foundation for cautious optimism. With commitments to deepen trade and investment, this deal has the potential to restore confidence, back to its previous levels, if implemented effectively.

"Despite these challenges, the survey shows that UK firms continue to view the US as a highly attractive market and are prepared to increase their levels of investment. The fundamentals of the US economy, its scale, innovation, and strong capital markets remain compelling, and that is why business leaders still see long-term opportunity."

Jonathan Frick, partner from Bain & Company's London office commented:

"While confidence in the transatlantic business corridor has dipped, we're still seeing a clear signal that business leaders remain committed to growth across borders. The fundamentals-strong capital markets, deep talent pools, and resilient trade relationships-are still very much intact. What's needed now is regulatory clarity. With continued momentum behind cross-border initiatives, there's a real opportunity to re-establish a stable, high-performing investment environment on both sides of the Atlantic."

Media contacts

For any questions or to arrange an interview, please contact:

Bain & Company:

Gary Duncan (London) - Email: [email protected]

BritishAmerican Business:

Mazar Ahmed (London) - Tel: +44 20 7290 9883 Email: [email protected]

Notes to Editors

This is the fifth edition of the Transatlantic Confidence Index issued by BritishAmerican Business and Bain & Company. The Index survey measured the confidence of US companies that are active in the UK and of UK companies that operate in the US. When appropriate, data from prior Index surveys is referenced for comparison. (UK investors' confidence in the US was not measured in the inaugural report, so statistics on UK confidence are available only from 2022 onwards).

A total of 75 companies doing transatlantic business responded to the 2025 survey, including 49 UK companies and 26 UK companies. Combined, they employ nearly 300,000 people and represent a range of sectors, including financial services, technology, healthcare, media, telecommunications, and manufacturing.

While many factors influence confidence, our survey focused on overall confidence for investing and trading, short-term investment prospects, and the health of the US-UK relationship overall.

About Bain & Company

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Across 65 cities in 40 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition, and redefine industries. We complement our tailored, integrated expertise with a vibrant ecosystem of digital innovators to deliver better, faster, and more enduring outcomes. Our 10-year commitment to invest more than $1 billion in pro bono services brings our talent, expertise, and insight to organizations tackling today's urgent challenges in education, racial equity, social justice, economic development, and the environment. We earned a gold rating from EcoVadis, the leading platform for environmental, social, and ethical performance ratings for global supply chains, putting us in the top 2% of all companies. Since our founding in 1973, we have measured our success by the success of our clients, and we proudly maintain the highest level of client advocacy in the industry.

About BritishAmerican Business

BritishAmerican Business is the leading transatlantic trade association incorporating the British-American Chamber of Commerce in the US and the American Chamber of Commerce in the UK.

We are committed to strengthening the economic corridor between the United States and the United Kingdom by supporting policies and action that protect and enhance the environment for transatlantic trade and investment.

We convene and serve a growing network of companies and business leaders through networking opportunities, bespoke programming and marketing platforms.