German-British Businesses Remain Resilient,
Strong Current Performance in the UK
NEWS RELEASE German - British Chamber of Industry and Commerce
(copyright, reproduced with kind permission)
German-British businesses remain resilient, with strong current performance in the UK. However, weak economic confidence in the overall economic development is driving more cautious investment and key structural challenges persist.
According to the recent Spring Survey of the German-British Chamber of Industry & Commerce, 51% of firms view their UK operations positively - a clear improvement since autumn - with 43% reporting stable and only 6% negative conditions. Despite this current strength, expectations for the near future are more subdued and largely unchanged from six months ago.
Overall sentiment towards the UK economy remains weak: just 2% expect improvement, 35% foresee continued sluggish development, and 63% take a negative view of growth prospects. As a result, expansion plans in the UK have declined (14% vs. 23% in autumn), indicating increased caution among businesses. However, 31% of companies plan to increase staff numbers, suggesting resilience in employment despite broader economic concerns.
The importance of the UK market continues to be the main reason for investment, while key challenges include political uncertainty, weak demand, Brexit-related barriers, and rising energy costs.
Businesses continue to call for improved UK-EU relations and reduced administrative burdens, while also adapting to geopolitical risks through measures such as nearshoring, market diversification, and increased stockpiling.
Dr Ulrich Hoppe, Director General of the German-British Chamber of Industry & Commerce, commented:
“German-British businesses are proving remarkably resilient. While current performance remains strong, it is clear that confidence in the wider UK economy is still fragile. Companies are adapting to a more complex and uncertain environment, but they need the right framework conditions to continue investing and growing. Strengthening UK-EU relations and reducing administrative barriers will be crucial to unlocking the full potential of our economic partnership.”
51 online interviews were conducted with members of the German-British business community with UK operations. The study was part of the World Business Outlook and conducted in conjunction with the German Chamber of Commerce and Industry (DIHK). Fieldwork was conducted between 26 March and 10 April 2026. The full results can be found at: https://grossbritannien.ahk.de/en/market-info/german-british-business-outlook.
