London Firms Rally for Profit Surge Amid Ongoing Challenges

London’s Business Pulse: A Jazz‑Up Forecast for the Next 12 Months

Hold onto your tea cups, because the London Chamber of Commerce and Industry just dropped the most optimistic snapshot of the city’s firms for the coming year yet.

Sales Are on the Rise – Big Time

↑ 30% of companies say their sales have gone up in Q2, up from 23% last quarter – the highest in ten years.
This optimism spreads across the board: both large multinationals and do‑it‑yourself SMEs.

Cash Flow Matters

31% of London businesses reported better cash flow, a sharp jump of 7 percentage points over Q1.

Hiring Trends – Part‑Time is the New Full‑Time

When firms decide to hire, 56% opt for part‑time roles—up from 36% last quarter.
Full‑time hiring dips a bit: 70% to 61%, though still comfortably above the 2024 winter figure.

Why the shift? Businesses are leaning into flexible staffing to keep pace with unpredictable market conditions.

Exports? Not So Much

Only 9% of firms saw an uptick in overseas orders this past quarter, a clear sign that foreign demand is still wobbling.

The Cost Crunch Still Keeps Them on Their Toes

Energy bills are the heavyweight champ—66% of businesses faced rising utility costs in the last three months.
Inflation remains the main irritant: 59% worry more about it in Q2 than before.
Workers’ wages and the general price squeeze stack the deck, leaving most firms sweating it out.

Liz Giles – Your Business’ Whisperer

“London’s economy is bouncing back, but the ball is a bit wobbling,” says Liz Giles, Policy and Communications Director at LCCI. “Smaller companies are tip‑toeing ahead because rising costs and labour shortages still loom. The new infrastructure and trading strategies are a good start, but the real deal is regaining confidence. That calls for a duet with the government, a long‑term partnership that pulls the levers to lift not just London but the whole UK.”