The German-British business Community Continues to be Successful,

The German-British business community continues to be successful, but the overall sentiment is not as positive as it was six months ago. Unsurprisingly, participants believe the UK Government should continue to prioritise resetting its relationship with the EU, estimating that this could improve their trading conditions.

According to the recent Autumn Survey of the German-British Chamber of Industry & Commerce, the sentiment for the overall development of the UK economy has deteriorated somewhat in comparison to six months ago. Now, only 21% of firms (instead of 34% in spring 2024) expect the UK economy to perform better over the coming year and 33% anticipate a sluggish performance (versus 19% six months ago). As a result, only 32% (instead of 44% in spring 2024) aim to expand their activities further. However, demand for labour continues to be strong as 40% of companies expect to hire new employees over the coming year.

When assessing their own operations, 46% of respondents view them as performing positively or very positively, 38% as stable, and 15% as negatively. This predominantly positive outlook is likely due to the strong competitive position that companies in the German-British business community have built over the past five years. Nearly 40% were able to improve their position in the market vis-à-vis their competitors, with only 16% experiencing a decline in this respect. Being a “German” brand or German owned seems to be a significant competitive advantage in the British market.

Political uncertainty, lack of demand, administrative hurdles as a result of Brexit, and shortage of skills continue to be major challenges for doing business in the UK. Therefore, it is not surprising that 80% of the German-British business community believe that the UK Government’s biggest economic priority should be to continue to improve the relationship with the EU. Interestingly, only 20% consider controlling the public deficit a key priority.

Dr Ulrich Hoppe, Director General of the German-British Chamber of Industry & Commerce, commented,

"The survey results suggest that the UK continues to be good place to do business with many opportunities to be seized, but challenges remain and a closer relationship with Europe is a crucial element in fostering growth.”

72 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 15 October 2024. The full results can be found at: https://grossbritannien.ahk.de/en/german-british-business-outlook