Business confidence in London rose two points during March to 61% according to the latest Business Barometer from Lloyds.
Companies in London reported higher confidence in their own business prospects month-on-month, down five points at 66%. When taken alongside their optimism in the economy, up 10 points to 57%, this gives a headline confidence reading of 61% (vs. 59% in February).
A net balance of 57% of businesses in the capital also expect to increase staff levels over the next year, up 12 points on last month.
The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide. This month’s survey was conducted at the start of March, between 2 – 16th.
Commenting on UK national confidence trends, Amanda Murphy, CEO for Lloyds Business and Commercial Banking said: “While businesses are adept at reacting to uncertain, fast-moving conditions, this month’s results show an interesting divergence in sentiment.
“Smaller businesses may have remained confident because they had not yet seen an immediate change in customer demand or supply chain disruption. Larger firms, however, read global events more cautiously because of their closer exposure to global markets.
“With most responses coming in the very early stages of the Middle East conflict, we’ll be watching closely to see how confidence evolves.”
National picture
Overall, UK business confidence rose 11 points in March to 55%.
Firms’ confidence in their own trading prospects rose seven points to 60%, and their optimism in the wider economy increased 14 points to 50%.
Kirsty Sadler, regional director for London at Lloyds, said: “As business confidence holds this month, we remain focused on supporting firms across the capital, providing the finance, guidance and expertise they may need.”
