German-British businesses remain resilient amid economic challenges – survey

German-British firms are reporting strong performances in the UK despite “key structural challenges” within the economy, a new survey reveals.

According to the recent Spring Survey of the German-British Chamber of Industry & Commerce, 51 per cent of firms view their UK operations positively - a clear improvement since autumn - with 43 per cent reporting stable and only 6 per cent negative conditions.

Despite this current strength, expectations for the near future are more subdued and largely unchanged from six months ago.

Overall sentiment towards the UK economy remains weak. Just 2 per cent expect improvement, 35 per cent foresee continued sluggish development, and 63 per cent take a negative view of growth prospects.

As a result, expansion plans in the UK have declined (14 per cent vs. 23 per cent in autumn), indicating increased caution among businesses.

However, 31 per cent of companies plan to increase staff numbers, suggesting resilience in employment despite broader economic concerns.

The importance of the UK market continues to be the main reason for investment, while key challenges include political uncertainty, weak demand, Brexit-related barriers, and rising energy costs.

Businesses continue to call for improved UK-EU relations and reduced administrative burdens, while also adapting to geopolitical risks through measures such as nearshoring, market diversification, and increased stockpiling.

Dr Ulrich Hoppe (pictured), director General of the German-British Chamber of Industry & Commerce, said: “German-British businesses are proving remarkably resilient.

“While current performance remains strong, it is clear that confidence in the wider UK economy is still fragile.

“Companies are adapting to a more complex and uncertain environment, but they need the right framework conditions to continue investing and growing.

“Strengthening UK-EU relations and reducing administrative barriers will be crucial to unlocking the full potential of our economic partnership.”

Fifty-one online interviews were conducted with members of the German-British business community with UK operations.

The study was part of the World Business Outlook and conducted in conjunction with the German Chamber of Commerce and Industry (DIHK).

Fieldwork was conducted between 26 March and 10 April 2026. Read the full results.