The UK remains the largest single investor in the US, according to the CBI, contributing $76 billion more than the next largest investor, Japan.
This $449bn, as of the end of 2014, represents a weighty 15% share of the $2.9 trillion of foreign direct investment the US received.
Investment by British companies across the Atlantic supports over one million jobs across the country, according to the CBI’s annual Sterling Assets report, with nearly a quarter of these jobs in manufacturing.
British businesses create jobs in every single state of the US. Texas leads the way - with 102,200 jobs supported by British companies - followed by California and New York. The UK also remains the largest foreign investor in the US manufacturing sector, investing $180bn in 2014.
Contributions from the US' neighbour, Canada, were nearly $200bn less than those from the UK, and combined Indian and Chinese investment was much smaller again – between the two countries it did not even approach 1% of FDI into the US.
Comparatively, US exports to the UK came to $123bn in 2015 – up $5bn on 2014 – making Britain the fourth largest destination for US exports for a second year running, and the largest within the European Union by a substantial margin.
In 2015, trade in services between the UK and US hit highs. Services exports to the UK rose to $66.9bn, up $3.7bn from 2014, whilst US imports of British services climbed to $53bn, rising $3bn in 2014.
Ben Digby, CBI international director, reflects on the ‘special relationship’ between the two countries: “Seventy years since Sir Winston Churchill coined his iconic phrase, it’s really encouraging to see the economic special relationship between the UK and the USA continuing to go from strength to strength…But even the strongest and most enduring relationships need close care and attention. Following the UK’s decision to leave the European Union, and with the United States heading to the polls to elect a new President, we need to do everything we can to make it easier to trade, invest and drive prosperity on both sides of the Atlantic.”
With the UK’s forthcoming exit from the European Union in mind, Mr Digby added: “A clear strategy will be needed to boost trade with partners, old and new, across the globe. Markets should be carefully prioritised, in consultation with business, to lay the foundations for deep and comprehensive future trade and investment relationships, and the USA must be at the top of that list.”