• The UK-US investment corridor remained one of the world’s busiest in 2025.
• Investment reached US$43.4 billion, supporting the creation of approximately 55,000 jobs.
• UK investment into the US increased by 48% in value, while US investment projects into the UK grew by 2.3%.
• Investors on both sides of the Atlantic are increasingly concentrating capital into fewer, larger FDI projects.

The UK-US investment corridor remained one of the world’s most active in 2025, recording 570 projects, US$43.4 billion in capital and approximately 55,000 jobs, according to a new EY and BritishAmerican Business report released today.

Against an uncertain macroeconomic and geopolitical backdrop, investment strategies have shifted, with capital now concentrating into fewer but larger projects. Investors are focussing on resilience, long term strategic positioning and deeper partnerships within sectors they consider structurally important.

UK investment into the US rose by 48%, despite a 15% decrease in projects created year-on-year. Yet average capital investment per project rose by 75%. At the same time, US investment projects into the UK grew by 2.3%, building on an already substantial level of US investment, while the value of US expansion investments increased by 36%.

Furthermore, expansion projects accounted for over a third (38%) of UK-to-US investment value in 2025, despite representing only around one fifth (21%) of projects. Investors are increasingly choosing to expand existing operations rather than launch new ones, reflecting a preference for lower-risk routes to growth and confidence in established transatlantic footprints.

Bridget Walsh, EY EMEIA Area Managing Partner and BritishAmerican Business Board Member, said:

“One of the clearest findings from this year’s report is the shift from volume to value. While project numbers have become more selective, investors continue to commit significant capital to the UK-US corridor, focusing on the sectors they believe will drive future growth.

“Businesses on both sides of the Atlantic are backing advanced manufacturing, technology and digital infrastructure, while also expanding existing operations in markets they know well. Investors are becoming more selective about where they place capital, but when they invest, they are investing at greater scale.”

Duncan Edwards, CEO, BritishAmerican Business:

“The fact that UK investment into the US increased by nearly 50 per cent should surprise no one. The US remains the largest and most attractive economy in the world and continues to offer UK businesses exceptional opportunities for growth.

“The UK continues to attract significant investment from US companies and remains one of the world’s leading destinations for international capital. But we should not take that position for granted. Competition for investment is hotter than ever, and many of the advantages the UK has had in the eyes of international investors have narrowed.

“If the UK wants to maintain its position as a leading destination for global investment, policymakers need to take a hard-headed look at the country’s competitiveness. Energy costs, taxation, regulation, infrastructure and skills all matter when companies are deciding where to invest.”

Key findings

Strategic sectors drive growth across manufacturing, tech and life sciences:

• UK-led manufacturing investment in the US rose 23% in 2025 and is 171% above 2023 levels.
• Software and IT investment increased strongly on both sides of the Atlantic, rising 15% for UK-to-US projects and 24% for US-to-UK projects.
• Strong flows into AI infrastructure and data centres highlight growing demand for digital capacity.
• Life sciences investment is combining UK R&D strength with US scale and market access to accelerate innovation. UK-to-US capital investment in pharmaceuticals increased 131% y/y.
• Expansion projects accounted for 38% of UK-to-US investment value in 2025, despite representing just 21% of projects.
• US-to-UK expansion investment increased by 36% in value year-on-year, reflecting continued commitment to existing UK operations.

Investment patterns are shifting:

• UK investment into the US increased by 48% in value in 2025, despite a decline in project volumes.
• US investment projects into the UK increased by 2.3%, demonstrating continued confidence in the UK market.
• Average capital investment per project rose by 77% for UK-to-US investment and 51% for US-to-UK investment between 2023 and 2025.
• Jobs created per project increased by 64% for UK-to-US investment and 30% for US-to-UK investment.

For more information on the report, visit https://www.ey.com/en_gl/six-key-trends-shaping-uk-us-bilateral-investment