LCCI Quarterly Economic Survey, Q2 2016

Survey of London businesses on behalf of the LCCI

Domestic demand declined considerably during Q2 2016,resulting in a greater proportion of businesses reporting a decrease than an increase in both domestic sales and orders. There has been a 12 point fall in the balance for domestic sales since last quarter, which is now in negative territory.
Export demand also declined, but despite falls in both export sales and orders, both balance figures remained in positive territory. On balance, 3% of London businesses reported increased export sales, down 7 points on last quarter, and 5% reported improved export orders, down 4 points on last quarter.
On balance, 13% of London businesses expected their overall company prospects to improve, down 4 points on last quarter to a Capital 500 record low. Profitability expectations also dropped to a new low, with 17% of businesses, on balance, predicting an improvement, down 5 points on last quarter.
Turnover expectations remained somewhat higher, as 24% of businesses, on balance, expected an improvement, down 3 points on Q1 2016.
Already at their lowest recorded level in the last two years, expectations for both the UK and Londo economy continued to decline – now for the fourth consecutive quarter.
Micro businesses continued to be particularly negative about the UK’s economic prospects, resulting in a -7% balance figure, compared to +7% for larger businesses.

Date Published: 07/07/2016

Categories: Business | Economy | Economy | Professionals | UK

Client: London Chamber of Commerce and Industry (LCCI)

Methodology

ComRes interviewed 508 London business decision makers online between 16^th May and 6^th June 2016. Data were weighted to be representative of all London businesses by company size and broad industry sector. ComRes is a member of the British Polling Council and abides by its rules.