Transatlantic Business Confidence Edges Up, but UK Faces Competitiveness Challenges — Bain & Company, Inc.

Event summary

The 2026 Transatlantic Confidence Index rose to 6.7 from 6.6, marking a fragile recovery after last year's record low.
US companies' confidence in the UK improved marginally from 6.3 to 6.4, citing concerns over tax, regulation, and energy costs.
UK companies' confidence in the US rebounded more strongly, from 7.5 to 8.1, with strong investment intentions despite concerns over political stability and immigration policy.
92% of US respondents rated the implementation of a pro-growth agenda as highly important for future investment in the UK.
UK companies plan to increase investment in the US, with 86% of respondents indicating moderate or significant increases.

The big picture

The modest recovery in transatlantic business confidence highlights the resilience of the US-UK economic corridor, but the UK faces significant challenges in attracting investment. US companies remain committed to the UK market but demand a more competitive business environment, while UK companies see strong opportunities in the US despite concerns over political stability and trade policy. The fundamentals of cost, regulation, and policy predictability will continue to shape investment decisions on both sides of the Atlantic.

What we're watching

Regulatory Headwinds: Whether the UK can address US investors' concerns over tax, regulation, and energy costs to improve competitiveness.
Political Stability: How changes in UK political leadership will impact business confidence and investment decisions.
Transatlantic Investment: The pace at which UK companies will increase their investment in the US, given strong confidence in US innovation and access to capital.