London business confidence dips amid rising wage costs, interest rates and Eurozone uncertainty
London's businesses have reported a dip in confidence from the last quarter as they factor in rising employment costs, interest rate uncertainty and the political fall-out from Eurozone debates.
The London Chamber of Commerce will release figures today showing the balance of companies that think the capital’s economic outlook will improve over the next 12 months is 26 per cent, down 12 points from the last quarter. Forty per cent still believe output will increase over the coming year.
Despite London businesses reporting stronger financial positions, an increase in sales, cash flows, and more investment, only 33 per cent of business leaders said they expected their firms’ prospects to improve next year.
Chief executive Colin Stanbridge told Morning Wire: “Businesses are now taking stock of what else is on the horizon after the election: China’s slowdown and uncertainty over Europe. They are waiting for the government to deliver the promised housing and infrastructure projects to make London succeed. We haven’t seen them yet.”