Confidence in the economy among London firms is increasing again, following a disappointing third quarter (Q3) in 2010, a report has found.
Research by the London Chambers of Commerce and Industry (LCCI) revealed that the number of firms expecting their profitability to increase rose by 7% from Q3 to 51% now. There were similar rises across a range of other important economic indicators including: turnover, output and cashflow.
Domestic sales rose from 22% to 34%, in a 16% rise from Q4 2009. UK orders meanwhile increased from 22% in the last quarter to 29%, up 19% from the same time last year.
Colin Stanbridge, chief executive of the LCCI said: “The closing months of 2010 were much better for London’s firms but it is unclear how January’s VAT rise and continuing cuts in government spending will affect confidence as we look ahead into the New Year.
“The coalition’s economic action plan does appear to be retaining the support of the business community but close attention is being paid to a new raft of employment proposals, which if not properly considered could hamper companies’ long term growth.”
The survey also shows that more generally business confidence in both London and UK economies is increasing, compared with the previous quarter.
According to the LCCI, the business community is still supportive of government’s policies, with 71% now saying they are fairly or very confident in their handling of the economy, up from 67% last quarter.
© Crimson Business Ltd. 2011