London business confidence rises to highest since Brexit referendum

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Smaller London firms are less confident than larger, the London Chamber of Commerce and Industry said (Source: Getty)

London's businesses are more confident than at any time since the 2016 Brexit vote, according to new figures to be published today.

The balance of firms in the capital reporting they are optimistic about the prospects for their firm rose to zero per cent in the second quarter – a 10-point quarterly increase – the London Chamber of Commerce and Industry will say.

Larger firms were more confident than smaller businesses, for whom the confidence reading remained negative on balance.

Read more: Sterling jumps after Carney expresses 'greater confidence' in UK economy

The poll of more than 500 firms showed that expectations for both the London and the UK economy remain negative on balance, as they have done for two years. The survey was carried out before the Cabinet's recent agreement on a Brexit negotiating position or the subsequent resignations of two ministers.

Colin Stanbridge, LCCI chief executive, said: “Despite an improvement in many of these figures much still needs to be done to ensure London businesses continue to prosper, now and in the future."

More firms reported that domestic demand fell than increased during the second quarter, although the fallback was somewhat compensated by an increase in export demand.

Meanwhile, firms' reported capital investments remained in negative territory, in spite of an improvement over the quarter.

Read more: Business and consumers' confidence wanes as uncertainty dominates

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