Eurozone threatens London’s optimism

Julian Harris
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BUSINESSES in the capital are significantly more bullish about economic prospects than they were six months ago, a leading survey reveals today – although the Eurozone crisis is threatening to dampen the mood.

Over four in 10 respondents from London firms reported a more optimistic outlook for the economy over the next six months, the study from the CBI and KPMG found. Back in December, a paltry 13 per cent had reported growing optimism.

Yet the report’s authors say that ominous events in the euro area are holding back economic activity. “Increased Eurozone anxiety means employers are reluctant to invest, take on new people or expand their business,” said Sara Parker of the CBI.

Half of surveyed employers in London are now freezing their recruitment, the report found, up from 23 per cent six months ago. Yet nearly half (47 per cent) of respondents are more optimistic about their firms’ prospects.