London businesses set to power through economic turbulence
London businesses are positioned to power the country’s economic recovery as they shake off uncertainties, according to the latest report from the London Chamber of Commerce and Industry’s (LCCI).
Nearly a quarter (24%) of the capital’s businesses noted an increase in domestic sales in the second quarter of this year, up from 21% in the three months to March.
Last quarter’s improved performance is also lifting confidence in future income flows as nearly two in five companies expect their turnover and profitability to increase in the next 12 months.
The report significantly depicts how London’s economy is on the up, despite firms battling inflationary threats, rising costs and consumer demands.
Chief Executive of the LCCI said the research “shows yet again the resilience and entrepreneurial drive of the London business community despite the economic headwinds.”
Employment demand is rising in the capital with only 5% of companies planning to streamline their workforce, and a greater 22% are set on bringing in new staff.
Neh Thaker, co-founder of HedgeFlows, added: “It is great to see that the current economic climate is brimming with confidence, providing a solid foundation for companies that aspire to expand their operations overseas. Such conditions are crucial to create a fertile ground for businesses to venture into international markets and reap the benefits of globalisation.
Taking the time to invest inward, in innovative tech and hiring new talent, can significantly help reduce barriers to entry and facilitate cross-border operations. With boosted confidence, efficient networks and digital platforms, companies can begin to establish and enhance their presence in international markets with relative ease and afford them a competitive edge abroad.”
The LCCI’s research also presented signs that while inflationary pressures are hanging around, they are at least cooling.
Just under half (43%) of firms also admitted to plans with intentions to hike prices in the next three months, down from half in the last quarter.