By Daniel Hunter
The UK remains the single largest foreign investor in the United States of America, supporting nearly one million jobs across the country, according to the CBI’s annual Sterling Assets report, launched on President Barack Obama’s 54th Birthday.
As of the end of 2013, the UK invested $519 billion in the USA, nearly $200 billion more than the next largest investor. This represents 19% of the $2.8 trillion of foreign direct investment (FDI) in America, which is an increase in the proportion of FDI the UK makes up — in 2012 it stood at 18%.
Providing an overview of the impact of British business on the American economy, the report shows that of the 962,900 jobs supported by UK businesses, more than one in four (260,000 jobs) is in manufacturing. The UK is the largest investor in the sector in the US, with investment of nearly $170 billion.
With exports to the UK totalling $118 billion in 2014, Britain is America’s fourth largest export market — an advance on 2013’s position as the fifth largest destination for American goods and services — and the largest in the EU by a wide margin.
The UK was the largest export market for American services in 2014, surpassing even Canada, whilst the USA imported more services from the UK, $50 billion worth in 2014, than from any other country.
Simon Moore, CBI International Director, said: “The strength and vitality of the economic ties that bind the United Kingdom and the United States together continue to forge ahead, driving prosperity on both sides of the Atlantic.
“These figures show just how close the commercial relationship between our two nations is. Whether it be Britain’s continued position as the largest foreign investor in the US or the fact that British firms support nearly a million American jobs, the UK is clearly well ahead of the pack.
“To boost this unique relationship, it’s vital that both the UK and the US pursue TTIP (Transatlantic Trade and Investment Partnership) with vigour, to take full advantage of the opportunities to boost growth and create jobs across our countries and Europe.”
At state level, British companies create jobs in every single state in America. California, Texas and New York top the list for the number of jobs supported by UK firms.
New York leads the way in exports to the UK, shipping $6.2 billion of goods to Great Britain in 2014, an increase of $1.2 billion on the previous year.