London’s Business Confidence Skyrockets
In March, London’s business confidence leapt up 14 points, reaching a solid 52%. The latest Lloyds Bank Commercial Banking Barometer shows that local companies are feeling the optimism coming from a stronger economic outlook.
Why the Boost?
- London firms report a 57% confidence in their own prospects – a 6‑point increase month‑on‑month.
- Confidence in the economy climbs to 47%, up 23 points.
- Combined, these figures give a headline reading of 52%, a jump from 38% in February.
What London Businesses Are Targeting
- New technology (AI, automation, etc.) – 43%
- Evolution of their offering (new products/services) – 43%
- New markets (expanding into adjacent or foreign markets) – 41%
Regional Snapshot
Yorkshire & the Humber leads the UK with 60% confidence, followed by the North East at 56%. London ranks third, showing its strength and steady rise.
Sector Shifts
- Services confidence dips 5 points to 40% – the first decline since December.
- Manufacturing sees a modest rise to 41%.
- Construction climbs to 40%.
- Retail confidence jumps to 45%, the best in over two years.
Voices from the Front
Paul Evans, London Regional Director: “The capital’s confidence is booming. Businesses see brighter horizons, thanks in part to last week’s inflation data pushing price rises to a two‑and‑a‑half‑year low. We’re ready to help them spot the opportunities ahead—whether through funding or strategic support.”
Hann‑Ju Ho, Senior Economist: “With 42% confidence in March, these numbers keep the upward trend alive, ending Q1 on a positive note. Firms are showing resilience and easing concerns about supply chains and energy prices. Hiring optimism remains, though it’s slightly down—perhaps the impending minimum wage increase is coming into sharper focus for smaller enterprises. Across the regions, London’s 14‑point rebound brings it back in line with its usual figures, while Yorkshire & the Humber’s 29‑point rise tops all regions. The Midlands sees a decline, an outlier to recent results. Overall, the barometer hints at potentially more optimistic growth in 2024, but medium‑term challenges remain.”
Quick Takeaway
London’s businesses are feeling optimistic, ready to leverage technology, innovate offerings, and expand into new markets over the next half‑year. On a national level, confidence sits steady at 42%, while regional and sector differences paint a more nuanced picture.
Get real‑time updates on this topic right on your device – simply subscribe to stay in the loop.
