Business confidence in London remains the highest in the UK despite falling five points during October to 37 per cent, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the capital reported lower confidence in their business prospects, which fell three points to 44 per cent, and lower economic optimism, down eight points to 29 per cent.
However, firms’ hiring intentions remained unchanged with a net balance of 38 per cent of businesses in the capital expecting to hire more staff during the next year.
Nationally, overall confidence fell 10 points to 19 per cent, its sharpest fall and its lowest level all year, as firms’ optimism about the economy slumped 18 points to just eight per cent. Companies’ confidence in their own business prospects fell three points to 29 per cent.
The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.
Paul Evans, regional director for London at Lloyds Bank Commercial Banking, said: “Concerns over the UK economy appear to be the main driver of the dip in confidence that London firms have reported this month.
“It seems clear that uncertainty over the UK’s future trading relationships is weighing on many businesses, but it is encouraging to see that firms’ confidence in their own prospects and their plans to create new jobs remain robust.”