London takes business crown as confidence hits highest since early 2022
London firms were the most confident in the UK as business confidence across the country hit the highest level since early 2022, according to a closely watched survey.
New data from the Lloyds Business Barometer showed that business confidence in London rose nine points to 56 per cent in November.
Reflecting the increased confidence, firms expect to hire more staff. A balance of 46 per cent of firms expected to increase staff levels over the next year, up 11 points on last month.
Paul Evans, regional director for London at Lloyds Bank Commercial Banking, suggested that confidence in the capital was growing ahead of a busy Christmas period.
“Walk through Covent Garden or down Oxford Street and it’s little wonder why London’s businesses are the most confident in the UK once again,” he said.
“The seasonal trading period is traditionally a busy time for the capital’s pubs, bars, restaurants and retailers, as increasing numbers of visitors and locals enjoy the festive period.”
Although London led the way, regions across the UK reported an improvement in their trading prospects meaning business confidence climbed three points to 42 per cent.
This was the highest level since before the Russian invasion of Ukraine and significantly above the long-term average of 28 per cent.
The upgrade was driven by improved trading prospects for the year ahead, greater optimism in the economy and more companies expecting to hire staff. Despite firms ramping up their hiring expectations, expected wage growth dropped slightly.
“It’s encouraging to see signs that wage expectations may be stabilising, even against the backdrop of hiring intentions increasing to an 18-month high,” Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, said.