London’s Business Confidence: Still the Big Cheese!
For the second straight month, the capital’s companies are rocking the highest confidence levels among all UK regions—though that mountain’s slightly lower than it was in November.
Month‑to‑Month Numbers (Not a Bubble Tea Count)
- Own Business Future: 66%—down 4 points from last month.
- Feels About the Economy: 41%—again 4 points shy.
- Overall Confidence Score: 53% (vs. 57% in November).
It’s a clear winner in December, taking the crown over every other UK region, including bustling cities and quiet countrysides alike.
What’s on the Future Playbook?
- Explore New Markets: 54% tick‑box.
- Invest in Staff: 42% interest.
- Enhance Product Offering: 42% enthusiasm.
- Adopt AI & Automation: 42% too!
The Business Barometer, a serial whisper‑network surveying 1,200 UK businesses every month, has been your early‑warning system since 2002. It tells us where the economy’s pulse might lead—including in London’s thriving lanes.
National picture
UK Business Confidence Takes a Bite Out of Its Bubble
December saw the big British market feeling a tad nervous – confidence slid two points to 39 %. Yet, it’s still a bright spot compared to the grand average of 29 %, so there’s usually a silver lining.
Economic Outlook? Still Cheerful!
The big picture? Firms are feeling lighter about the wider economy, knocking it up five points to a solid 31 %. In other words, if the economy were a playlist, it’s still got a few hits on the top of the charts.
Trading Prospects? Nowhere Near Their Best
On the flip‑side, when it comes to their own trading chances, businesses are less convinced – a drop of eight points to 47 %. Think of it as a confidence level that’s taking a rest in the back corner of the coffee shop.
Spotlight on the North West
While London sat at the top with 50 %, the North West is doing pretty well, coming in a close second in the UK confidence rankings. Guess those rows of bustling factories are doing more than just putting on a good show!
Sector Insights
Business Confidence Snapshot: Manufacturing & Retail Take the Lead
London’s got the bragging rights, but analysts say the city’s optimism is a little slimmer this month.
What’s Happening?
- Services confidence dropped from 46% to 35% – an 11‑point slide.
- Manufacturing surged 10 points to 42%, while Retail jumped 10 points to 43%.
- Retail’s trading outlook bounced back after a three‑month slump.
- Construction held steady at 41%, matching last month.
Why the Mix?
The dip in services is backed by slightly shakier trading prospects, yet most firms still see the economy in a good light, which keeps the mood upbeat as we step into 2025.
Spotlight on London
Kirsty Sadler, Lloyds’ regional director for London, notes the capital remains the brightest spot for business confidence, even with a touch of a dip.
“London keeps leading the country in business confidence, and we’re helping firms launch and fine‑tune their plans for the upcoming year,” she says. “We’ll stay by their side with tailored support to catch the next wave of opportunity.”
Economic Outlook
Senior Economist Hann‑Ju Ho worries that overall confidence has been sliding, dropping 2 points to a year‑low of 39%. Despite the steady drop, the services sector’s slump is balanced by boosts in manufacturing and retail—especially handy as we head into the holiday season.
Ho adds: “The service decline is largely a result of firms’ own trading prospects struggling in the last quarter, but overall optimism keeps growing. If businesses remain hopeful about the economy, 2025 could still bring some bright surprises.”
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