According to the latest Business Barometer from Lloyds, companies in London reported a marked rise in confidence in their own business prospects, with a 13-point increase to 70%
Business confidence in London has surged by 11 points to reach 64% in June, according to the latest Business Barometer from Lloyds. This significant increase reflects a growing optimism among firms in the capital about their own trading prospects and the broader economic outlook.
Companies in London reported a marked rise in confidence in their own business prospects, with a 13-point increase to 70%. This surge in optimism was accompanied by a similar rise in confidence in the economy, which climbed 11 points to 59%. Together, these figures contribute to the headline confidence reading of 64%, up from 53% in May.
A net balance of 45% of businesses in the region also expect to increase staff levels over the next year, a five-point rise from the previous month. This indicates that firms are not only optimistic about their future performance but are also planning for expansion and growth. Looking ahead to the next six months, London businesses have identified key areas for growth. Investing in their team through training is a top priority for 55% of firms, while 49% plan to enter new markets. Additionally, 46% are looking to introduce new technology, such as automation or AI, to enhance their operations.
The rise in London’s business confidence is part of a broader trend across the UK. Overall, UK business confidence increased by one point in June to 51%. Firms’ optimism in their own trading prospects strengthened by one point to 57%, while their confidence in the wider economy also rose by one point to 45%.
Wales was the most confident UK nation or region in June, with a confidence level of 67%, closely followed by London at 64%.
The manufacturing and retail sectors saw significant gains in business confidence this month, with both sectors experiencing a 12-point rise to 52%. This marks an 11-month high for the manufacturing sector. However, confidence in the construction and services sectors declined, with falls of five points and four points respectively.
Kirsty Sadler, Regional Director for London at Lloyds, expressed her enthusiasm about the rising business confidence in the capital. “It’s fantastic to see London business confidence continue to rise,” she said. “This optimism sits alongside clear plans for future growth – whether that’s hiring more staff, or investing in technology or expansion. We remain committed to supporting firms as they take those next steps.”
Hann-Ju Ho, Senior Economist at Lloyds Commercial Banking, highlighted the positive momentum in business confidence. “Business confidence has continued its positive trajectory, following the significant gains we saw in May,” he noted. “In particular, the sustained rise in hiring intentions suggests that while firms do still face challenges, they may be starting to look beyond short-term staffing needs and preparing for future growth.”
The Business Barometer, which has been running since 2002, surveys 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide. The latest results indicate a promising outlook for London and the UK as a whole, with businesses showing increased confidence and clear plans for expansion and investment.
The latest Business Barometer report from Lloyds reveals a significant uptick in business confidence in London, with firms expressing greater optimism about their own trading prospects and the broader economic outlook. This surge in confidence is not only a positive sign for the capital but also indicates a broader trend of economic recovery and growth across the UK.
The latest Business Barometer report from Lloyds paints a positive picture of the UK’s economic outlook, with London leading the way in terms of business confidence. Firms in the capital are not only optimistic about their own trading prospects but are also planning for future growth through hiring, training, and technological investment. This surge in confidence is part of a broader trend across the UK, with overall business confidence rising and firms in Wales and London showing the highest levels of optimism. As businesses continue to demonstrate optimism and plan for growth, the UK’s economic landscape appears poised for further development and success in the coming months.
