One-in-Five London-Based Businesses Pessimistic about Growth
Companies based in the capital are significantly less optimistic than the rest of the UK, despite economic growth predictions of 15% in the next five years
One-in-five London-based firms are pessimistic about their business’ future, a considerable difference compared to those based in the North regions – where over 90% say they feel optimistic about growth potential, according to a recent report by B2B International.
Overall business confidence levels throughout the UK are higher than those in London, despite the widening financial gap as the city is predicted to have the fastest rising economy with 15% growth over the next five years.
In fact, the research found that firms who experienced revenue declines of 5% or more in the last two years were more likely to be positive about their business’ commercial future. Manufacturing displayed the highest confidence, with one-in-three businesses within the industry stating that they are confident in their firm’s ability to grow.
The director of B2B International, Paul Hague, commented on the disparity between growth and optimism amongst London and the rest of the UK:
“We can explain the difference by understanding that companies that have struggled to grow in the economic downturn are more likely to be confident with the onset of recovery.
“Unlike many Northern regions, London’s economy has continued to prosper, and in turn companies here may be more reserved about their outlook, particularly with Eurozone growth grinding to a halt and the question mark over the UK’s EU membership.”