Data from greenfield investment monitor fDi Markets shows that between 2013 and 2015, the UK invested in 868 projects in the US. Perhaps unsurprisingly, due to its close proximity to the UK, the most prominent region for investment was the mid-east US, which attracted 238 (27%) of the projects. However, there was a year-on-year decline of UK FDI into the mid-east US between 2013 and 2015. During 2013, 88 UK investment projects were recorded in the mid-east US, a figure which decreased by 14% in 2014. The trend continued in 2015 when a further decrease of 3% was recorded.
The top two sectors – business services and software and IT services combined – saw their number of projects fall by 20%, from 55 in 2013 to 44 in 2015. Job creation as a result of UK-based FDI into the mid-east US also declined during this period. The number of jobs created during 2013 totalled 5643. Following year-on-year declines, by 2015, this figure had decreased by 36%. The average number of jobs created per project also declined as less labour-intensive projects in the software and IT services, business services and financial services sectors have become more prominent.
Capital investment from the UK to the mid-east US has also trended downwards since 2013. fDi Markets recorded a decrease of 16% between 2013 and 2014, representing $233.5m less capital investment. Continuing this trend, 2015 saw the mid-east US attract $1.17bn in capital investment from UK-based companies, a decrease of 5% from 2014. However, in this respect, the mid-east US performed well in comparison to UK capital investment into the entire US, where a 35% decline was recorded between 2014 and 2015.