London’s Business Confidence Gets a Boost in May
According to the latest Business Barometer from Lloyds Bank Commercial Banking, London’s business confidence has climbed a solid 12 points, hitting 55% for the month of May.
What the Numbers Really Mean
- Companies are feeling more optimistic about their own prospects, up 9 points to 54%.
- Economic optimism has jumped 15 points to 56%.
- When you combine both, the headline confidence reading jumps from 43% in April to 55% in May.
Top Growth Targets for the Next Six Months
- Investing in sustainability (41%) – going green has never looked so profitable.
- Introducing new technology (40%) – because who doesn’t want the latest gadgets in their toolbox?
- Investing in team training (37%) – skill‑ups for the squad.
Hiring Outlook
About 50% of businesses in the capital are planning to boost their staff levels over the next year, up 10 points from the previous month.
Why This Matters
The Business Barometer surveys roughly 1,200 firms each month, offering a sneak‑peek into UK economic trends both regionally and nationwide. This edition’s data, collected between 1–16th May, came just before the UK general election was announced, adding an extra layer of intrigue to the story.
National picture
UK Business Confidence Sky‑High in May—We’re All Talkin’ About It!
Grab your coffee, because the latest numbers are a hint of sunshine for the business world. In May, the overall confidence score for U.K. firms hit a bright spot that hasn’t been seen since 2015, leaping up eight points to a solid net balance of 50 percent.
What’s Really Making Manager Heads Pop?
- Trading prospects: The optimism for day‑to‑day sales and deals is up 9 points month‑on‑month, ticking at 54 percent. That’s the highest trading outlook we’ve seen in seven years.
- Economic outlook: Confidence in the broader economy has climbed 7 points, landing at 46 percent—our best score since September 2021.
Regional Love‑Letter to Optimism
When it comes to who’s feeling the best vibes, let’s take a quick tour of the top spots:
- Scotland – 57% joy
- South East England – 57% sparkle could be a Sunday ambition
- West Midlands – 56% confidence, almost as cheesy as a good biscuit chart
There you have it—a whirlwind of optimism across the nation! The numbers tell the story of a business community buzzing with renewed energy. Who knew optimism could have such a strong regional twist? Cheers to that—let’s keep the momentum going!
Sector insights
Business Confidence Takes a Great Leap Forward
In the last month, the construction and services sectors have shown remarkable growth, setting new highs for the year.
Construction
- Prospects at 58% – an impressive +20‑point jump, the best level in thirteen months.
Services
- Expected output at 57% – +12 points, the highest mark since the survey was revamped in 2018.
Retail
- Activity at 49% – up 3 points, showing steadier momentum.
Manufacturing
- Trading prospects at 49% – a slight decline of 3 points, but the trend over the last three months remains positive.
London’s Business Scene is Buzzing
Paul Evans, regional director for London at Lloyds Bank Commercial Banking, shares his insights:
“May has been more than just a taste of summer for the capital – it’s sparked a confidence boost across the board. It’s encouraging to see most London businesses planning to hire, which can positively impact local communities and the broader economy. With Wimbledon on the horizon and the arrival of Taylor Swift’s Eras tour, the city will be busier than ever, opening doors for growth, especially in hospitality. We’ll stay right beside businesses as these opportunities unfold.”
Optimism on the Rise
Hann‑Ju Ho, Senior Economist at Lloyds Bank Commercial Banking, highlights the broader picture:
“These results underline a significant upswing in business confidence. Optimism about the economy climbed to 46% this month, the highest since September 2021 – a time shortly after the pandemic and before the post‑Ukraine energy crisis. Regionally, we’ve seen improvements in seven of the UK’s 12 areas, with notable gains in the South East, Scotland and the West Midlands. Across sectors, services and construction are leading the wave of positive change.”
