London businesses are among the most pessimistic nationwide when considering their prospects for the coming year, reveals a survey published today by the Institute of Chartered Accounts in England and Wales (ICAEW).
According to the latest UK business confidence monitor, London is the third most negative region with confidence standing at a “record low” of –29.7 – below the national average index score of –25.7.
This revelation of business confidence in the UK economy is based on interviews conducted with senior finance professionals throughout the country and shows confidence has continued to drop since the end of last year, both nationally and in the capital.
The glum outlook is due to key sectors continuing to struggle. Banking, finance and insurance and property sectors are still feeling the pressure of the dwindling economy in London.
However, the biggest change has come from the business services sector, where an originally positive outlook when the credit crunch first hit the UK a year ago has now also taken a turn for the worse.
Commenting on the results, Ian Strange, regional director of the ICAEW in London, said: “The survey paints a stark picture of the challenging business environment in the UK over the past year. We see evidence of a new realism among London firms.”