London businesses "most confident in UK", according to Lloyds Bank

Business confidence in London rose 12 points during September to 33 per cent, the highest of all UK regions and nations, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

Companies in the capital reported higher confidence in their own business prospects month-on-month, up seven points at 46 per cent. When taken alongside their optimism in the economy, up 17 points to 20 per cent, this gives a headline confidence reading of 33 per cent.

London’s businesses identified their top target areas for growth in the next six months as investing in their teams (46 per cent), introducing new technologies (33 per cent) and evolving their offering (32 per cent).

The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. A net balance of more than a quarter (27 per cent of London businesses expect to increase staff levels over the next year, up three points on last month.

Overall UK business confidence stayed the same as in August during September at 16 per cent. Despite the net balance of businesses planning to create new jobs increasing by one point to 17 per cent, firms’ outlook on their future trading prospects dropped one point to 25 per cent, and their optimism in the wider economy also fell by one point to 5 per cent.

Becci Wicks, regional director for London at Lloyds Bank Commercial Banking, commented: “The significant rise in confidence this month is a cautious signal that firms are delivering business as usual as best as they can in the face of numerous economic headwinds.

“While hiring and staff retention remains a challenge for businesses far and wide, it’s encouraging that the capital’s firms still plan to recruit and invest in their people.

“When it comes to making the most of wider growth opportunities, keeping a keen eye on working capital will be key, and we’ll remain by their side to provide the support they need to realise their potential.”

Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, added: “It is encouraging to see business confidence stabilising after a three-month decline. Firms’ assessment of their own trading prospects also remained steady and continues to show some resilience during turbulent times.

By Matthew Neville – Correspondent, Bdaily

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