Business confidence in London has taken a hit recently, dropping to its lowest level in months just before Labour’s Autumn Budget. The Lloyds Barometer survey conducted from 1 to 15 October revealed that confidence fell by three points to 44% in October. This is a significant decline from the 50% confidence levels seen in July and August, which were the highest levels recorded since November 2015.
The survey also found that employers’ hiring intentions have increased, indicating that more businesses are looking to expand their workforce. However, SMEs trading optimism in the face of a weak economy has dropped by three points to 35% in October. Despite this decline, Hann-Ju Ho, a senior economist at Lloyds Commercial Banking, remains optimistic about the overall business sentiment.
Ho stated, “Although overall business confidence dipped in October, it follows a sustained period of significant optimism, and business sentiment remains above historical levels.” He also highlighted that many businesses are still confident in their own trading prospects, and the increase in hiring intentions is a positive sign for the job market.
Looking ahead, businesses in London will need to effectively manage these economic considerations as they navigate the final months of the year. The broader economic outlook for businesses remains mixed, but there is hope that the current dip in confidence is only temporary. As we head into the end of the year, it will be crucial for businesses to adapt and make strategic decisions to ensure their continued growth and success in the challenging economic environment.
