London’s business community remains surprisingly upbeat about the city’s economy and outlook for the next 12 months, according to a survey of professionals by Santander.
The poll found that just 9% of local business people are pessimistic about London’s economy; in contrast, almost half feel that despite Brexit, London’s economy is unchanged and 45% are optimistic, including 13% who are ‘very’ optimistic. Just 16% believe the outlook for business will worsen over the next 12 months and the majority are hopeful about prospects for local employment.
The research of local business sentiment was conducted to support Santander’s Breakthrough Red Box week-long business event to showcase support for business in London.
The bank believes that the battered UK currency, recently only just holding above the US$1.20 level, could be trading at US$1.36 by this time next year.
The group reports that currency fluctuations were less of a challenge to multinationals in the second quarter of 2016, but Brexit has since spelt a return to volatility.
The business group says that the UK’s withdrawal from the EU puts nearly US$600bn of investment at risk, according to a Financial Times report.
But business leaders are concerned about nationalist governments and currency volatility that makes cross-border deals more difficult, reports EY.