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Business confidence in London falls against UK average

Despite expecting increased orders and profits over the next six months, business confidence amongst SMEs in the capital has fallen to 40 per cent, three per cent less than the national average.

According to figures released today by Lloyds bank, limited growth meant the overall measure of business confidence in London fell from 51 per cent in 2014.

In the biannual Business in Britain report surveyed 1,500 UK SMEs, a quarter of London firms said they did not intend to invest in growing their business over the next six months.

With only 18 per cent saying they intended to hire more staff, and 43 per cent saying they have experienced difficulties hiring skilled labour.

Paul Evans, a director at Lloyds, said: “The skills gap in London continues to be a hurdle for businesses on a recruitment drive, increasing the likelihood of further wage rises. Without productivity improvements, or price inflation exerting some moderating influence on wages, firms may have to respond by eventually raising the price of their goods and services.”

This was posted in Bdaily's Members' News section by Ellen Forster .