Big bets by US take foreign investment in UK past £2trillion
FOREIGN DIRECT investment in the UK has climbed above £2trillion for the first time as US companies increased their bets on Britain.
US investors were behind an extra £89.7bn of investment into Britain from the Americas in 2021, contributing to an overall £83.1bn increase in investment from abroad, the Office for National Statistics (ONS) said.
The jump suggests more companies are establishing a “lasting interest” in the UK by creating jobs or building factories, rather than simply buying shares in British companies.
The US accounts for around a quarter of foreign direct investment in Britain, with companies across the Atlantic ramping up investments because they see the UK as undervalued compared with Europe. Inward foreign direct investment created almost 85,000 jobs between 2021 and 2022, figures show.
British companies have also been the target of takeovers in recent years, including supermarket Morrisons, bought in 2021 by US private equity firm Clayton, Dubilier & Rice for £7.1bn.
Separate ONS data showed British households are richer than ever before thanks to a rise in house prices and share values that pushed up overall wealth.