However, large sectors of the national economy are still struggling for momentum.
An improvement in economic growth over the next year is expected by 49 per cent of London business leaders, according to a survey from the London Chambers of Commerce and Industry. (LCCI)
It compares with 11 per cent expect who expect the economy to contract. The difference, or balance, of 38 per cent is nine point improvement on the first three months of the year.
“It is heartening to see such a strong rebound in results in comparison to the last two quarters. Business confidence about their own prospects is at a one year high; turnover expectations are at near record highs and after a sharp decline in domestic demand at the beginning of the year, performance has picked up significantly as one in five business leaders reported increased sales demand,” said Colin Stanbridge. chief executive of LCCI.
London firms’ optimism is currently not being reflected in other sectors of the economy. Figures published by the Office for National Statistics yesterday revealed a decline in the manufacturing sector.
Exporters have been hindered by a strengthening of the pound, which has made their products more expensive to foreigners, and weak demand from Europe, the UK’s biggest export market.
“These data are worth a closer look as they cast further doubt on notions that the UK economy is gaining momentum and achieving above-trend expansion,” said economist Ross Walker from UBS.
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