London business confidence drops as economic doubts grow

Lloyds Bank’s Business Barometer for April 2018 shows

Business confidence in the capital fell 12 points during April to reach 43 per cent, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

Companies in London reported lower confidence in their business prospects at 45 per cent and lower economic optimism at 41 per cent.

Together, this gives an overall confidence of 43 per cent, which is 12 points below last month’s figure of 55 per cent.

Companies’ hiring intentions showed that a net balance of 44 per cent of businesses in the capital expect to hire more staff during the next year, down two points on last month. 

Nationally, overall confidence remained unchanged at 32 per cent, although firms’ confidence in their own business outlook fell five points to 31 per cent.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

Across the capital, a net balance of 23 per cent of businesses said they felt that the UK’s exit from the European Union was having a positive impact on their expectations for business activity, up 3 points on a month ago.

Paul Evans, regional director for London at Lloyds Bank Commercial Banking, said: “Business confidence across London has taken a hit in April, but it remains high compared with the rest of the UK. 

“There are signs that economic concerns are beginning to grow, but companies remain keen to take on more staff – and this commitment is still intact.”