London businesses “back on track”, according to new research by Lloyds Bank

Business confidence in London rose 20 points during March to 38 per cent, according to the latest Business Barometer from Lloyds Bank Commercial Banking, conducted between March 1 and 15 ahead of the Chancellor’s Spring Budget (March 15).

Companies in the capital reported higher confidence in their own business prospects month-on-month, up 12 points at 49 per cent. When taken alongside their optimism in the economy, up 29 points to 28 per cent, this gives a headline confidence reading of 38 per cent.

London’s businesses identified their top target areas for growth in the next six months as evolving their offer (44 per cent), investing in their team (39 per cent) and introducing new technology (35 per cent). The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.

A net balance of 25 per cent of businesses in the region expect to increase staff levels over the next year, up eight points on last month. Overall UK business confidence climbed 11 points to 32 per cent in March, with firms reporting their highest confidence levels since May last year.

On average, firms felt positive about their own trading prospects with 39 per cent of firms expecting business activity to increase in the next 12 months, up eight points on last month and 25 per cent said they would increase staff levels by this time next year, up five points month-on-month.

Every UK region and nation had a positive confidence reading in March, with eight out of 11 regions recording a month-on-month increase in confidence.

For the second month in a row the West Midlands reported the highest levels of business confidence at 48 per cent (unchanged month-on-month), followed by London, Scotland (up 24 points) and the North East (up two points) all at 38 per cent.

Becci Wicks, regional director for London at Lloyds Bank Commercial Banking, commented: “London’s businesses are back on track. It’s a brilliant surge in confidence in March and the data shows that the capital’s firms have managed to shake off any Winter blues and are gearing up for a long summer of growth.

“Firms in London are optimistic in their own prospects too and it’s clear many are putting plans in place to capitalise on opportunities in the coming months.

“Businesses that plan ahead, with detailed long-term forecasting and flexibility in their cashflow will boost their chances of success. We’ll continue to stay by firms’ side as they identify new opportunities and set about seizing on them.”

By Matthew Neville – Senior Correspondent, Bdaily

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