Investors are more positive about investing in the UK post-Brexit this year than they were last year, according to a survey released today.
The research shows that 62 per cent of investors are more likely to invest in the UK post-Brexit, up from 31 per cent last year.
Overall 88 per cent of investors said Europe as a whole was more attractive as an investment destination, up from 58 per cent of investors last year, according to the research by European private equity and venture capital trade association Invest Europe.
Chief executive of Invest Europe Michael Collins said: “The UK has always been a good place to invest and Brexit isn’t really changing people’s perspectives of that fundamental strength."
He also said: “There is a reasonable degree of expectation among investors that Brexit will get resolved one way or another and there will be enough of a settlement to enable business as usual to continue for most.”
According to recent figures from the United Nations Conference on Trade and Development the UK was the second most popular destination for foreign direct investment globally in the first half of 2018.
The UK received an estimated $66.5bn (£51.22bn) in overseas investment in the first half of the year, behind China on $70.2bn and ahead of the US on $46.5bn and the Netherlands on $44.8bn.
However, despite the strong start to 2018 UK companies may be reticent about pursuing deals over the next year, according to a survey from accountancy firm EY.
The proportion of executives who said they will actively pursue M&A over the next 12 months is at a four year low, standing at 45 per cent, down from 65 per cent a year ago.
Steve Ivermee, EY’s transaction advisory head, said: “Uncertainty is giving some executives pause for M&A thought and that will likely result in a fall from current deal highs in the next 12 months.
“UK companies may expect to be less active, but are maintaining their deal pipelines with an emphasis on operational fitness, as trade and regulatory headwinds grow. They haven’t significantly downgraded their expectations for deal markets, however, so it looks like they are temporarily holding a lower gear rather than actively retreating from transactions.”