German-British Chamber of Industry & Commerce: Results of the Spring Survey 2025
Performing Positively or Very Positively
(Copyright German - British Chambers of Commerce, reproduced with kind permission)
The German-British business community continues to be upbeat for their UK business activities, but global challenge and weaker economic growth are beginning to bite. Therefore, companies hope that the UK Government prioritises resetting its relationship with the EU.
According to the recent Spring Survey of the German-British Chamber of Industry & Commerce, approximately half of survey respondents view their own UK operations as performing positively or very positively, 34% as stable, and 19% as negatively. These numbers paint a somewhat similar picture compared to the autumn of last year, suggesting that most companies continue to operate reasonably successfully in the UK. As a result, investment plans within the German-British business community have remained broadly unchanged, with one third aiming to expand their activities.
In contrast to the positive outlook for their own operations, the sentiment towards the overall development of the UK economy has continued to deteriorate compared to six and twelve months ago. Currently, only 10% of firms (down from 21% in autumn 2024 and 34% in spring 2024) expect the UK economy to improve over the coming twelve months, with 48% expecting a sluggish performance (up from 33% in autumn 2024 and only 19% in spring 2024).
As in past surveys, political uncertainty, administrative hurdles resulting from Brexit, the politics of the new US administration, as well as lack of demand (as a result of the weaker economic outlook) continue to be major challenges for doing business in the UK. However, in line with the slightly weaker economy, addressing skills shortages has become somewhat less challenging.
Unsurprisingly, the majority (63%) of companies, even those focused solely on the UK market, still expect to be negatively impacted by the current US trade policies, underlining the global interconnectedness of European trade relations.
Dr Ulrich Hoppe, Director General of the German-British Chamber of Industry & Commerce, commented, "The survey results suggest that despite the deteriorating economic outlook, the UK continues to be a good place to do business, but global challenges loom large and a closer relationship with Europe is a crucial element in fostering growth.”
58 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 3 and 11 April 2025. The full results can be found at: https://grossbritannien.ahk.de/en/market-info/german-british-business-outlook.
