Lloyds Bank today released figures showing that business confidence in London has fallen slightly against the national average.
The biannual Business in Britain report surveyed 1,500 UK SMEs and found companies in London expected increased orders and profits over the next six months.
However, limited growth meant the overall measure of confidence fell to 40 per cent, below the national average of 43 per cent, and down from 2014’s high of 51 per cent.
A quarter of London firms said they did not intend to invest in growing their business over the next six months. Only 18 per cent said they intended to hire more staff and 43 per cent said they had difficulties hiring skilled labour.
Paul Evans, a director at Lloyds, said: “The skills gap in London continues to be a hurdle for businesses on a recruitment drive, increasing the likelihood of further wage rises. Without productivity improvements, or price inflation exerting some moderating influence on wages, firms may have to respond by eventually raising the price of their goods and services.”
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