Optimism among the United Kingdom’s top business leaders has increased significantly over the past year, placing them ahead of many international peers in confidence about future growth, according to a recent global survey. The study, carried out by KPMG and involving 1,400 chief executives from companies with annual revenues exceeding $1 billion across 12 major economies, found that 86 to 90 percent of UK CEOs expressed confidence in their firms’ growth prospects over the next three years. This marks a notable rise from around 74 percent expressing such confidence at the same time last year.
The UK now ranks third globally for CEO optimism, surpassing countries such as the United States, France, Australia, Spain, and Canada, which had all previously been rated more positively. Only Italy and India reported higher levels of CEO confidence. The improvement in sentiment comes despite ongoing global challenges, including the conflict in the Middle East and concerns related to inflation and interest rates.
KPMG UK Chief Executive Jon Holt highlighted several factors contributing to the more upbeat outlook among British business leaders. These include optimism following the formation of a new government, early signs of improvement in the labor market, relatively stable interest rates, and gains in productivity driven by investment in artificial intelligence (AI). Holt described the UK as “a great place to do business” and noted the importance of shifting public and political narratives to better reflect these positive developments.
Business leaders identified key challenges such as addressing skill shortages and enhancing employee capabilities to keep pace with AI advancements. Holt noted a transition in corporate attitudes towards AI: from initial experimentation to seeking measurable outcomes from investments. He suggested that companies may soon reach a tipping point where AI adoption delivers significant boosts in productivity, capacity, and operational speed. However, he emphasized the necessity of governance frameworks, advocating that human leadership should remain central to AI deployment.
In addition to operational concerns, CEOs called for greater policy certainty, particularly concerning tax regulations, urging the Chancellor to provide long-term clarity in the upcoming budget to support business planning and investment.
Overall, the survey indicates a stronger sense of confidence among UK business leaders compared to the previous year and relative to several other leading economies, signaling a potentially positive phase for British corporate growth amid a complex global environment.