***HSBC UK data on payments and new subsidiaries show significant growth between UK and US businesses***
***UK businesses are optimistic about the future economic relationship between the UK and the US***
Business activity between the UK and the US is thriving according to new HSBC UK data.
In the 12 months to June 2024, year-on-year
- the value of payments made by HSBC UK business clients to the US rose by 15%
- the value of payments received by UK clients from the US rose by 5%
In the first six months of 2024, year-on-year
- UK firms acquiring US businesses or creating entirely new subsidiaries in the US increased by 45%
- US firms acquiring UK businesses or creating entirely new subsidiaries in the UK increased by 71%
In 1H 24, HSBC UK received more new business client referrals from HSBC US than any other market globally.
In 1H 24, HSBC US received more new business client referrals from HSBC UK than any other market globally.
Stuart Tait, Head of Commercial Banking at HSBC UK, said: “Business partnerships between the UK and the US remain strong. UK businesses view the US as an attractive growth market because of its stable economy, transparent regulatory environment and cultural similarities.
“International growth enables companies to diversify their business, with many viewing expansion into new markets as a quicker way to drive growth, rather than new product development. In the first half of this year, HSBC UK received more new client referrals from HSBC US than any other HSBC market globally.
“HSBC has a long history supporting trade between the two countries and our dedicated teams both here and in the US provide expert advice to companies looking to expand internationally.”
Wyatt Cowell, US Head of Commercial Banking at HSBC, said: “Our ambition is to be the leading international wholesale bank in the United States, and a strong US-UK corridor is critical to that objective. In the first half of this year, we received more new client referrals from the UK than any other market globally.
“We want to be the bank of choice for the global innovation economy by connecting our international clients and their subsidiaries to the UK and US markets and HSBC’s broader global network. In the coming years, we expect this special relationship will only continue to grow and strengthen.”
Business optimism
According to a HSBC UK survey, UK businesses are positive about the US and the opportunities that exist there.
The survey of more than 1,000 business decision-makers in medium and large businesses reveals 55% are optimistic about the future economic relationship between the UK and the US. Just 16% were pessimistic, with 26% neither one nor the other. The sectors which are most optimistic are: IT & Telecoms (70%); Construction (66%); and Finance & Accounting (61%).
Continuing the optimism, nearly a third of all businesses (31%) said there was nothing whatsoever stopping them from growing in the US. More than a quarter (27%) of respondents said that while they were not currently doing business with the US, they would consider doing so in the future. When asked how further business with the US could be encouraged, respondents pointed to an improving exchange rate (30%) and readily available advice from either Government or banks on how they can expand (28%).
Stuart Tait added: “We know the US is a market our clients want to expand into. Not only can we connect businesses with supply chains, we also offer a full range of services to support international expansions including flexible finance, global payments solutions and foreign exchange products.”
