London business on the rise

Business activity across London increased in February, according to a new report.

Rising from an index figure of 59.5 from 57.0 the previous month, the latest reading also shows an increase on the figure for the UK overall (58.2).

The increase has been explained by a rise in backlogs of work boosting employment.

Lloyds Bank Commercial Banking area director for SME banking in Central London Ian Patterson said: “London’s private sector economy continued to expand at a smart pace in February, leaving the capital well on course for another strong quarter following 2013’s performance trend.

“The latest figures indicate that job creation and output growth in London remains ahead of the UK as a whole. While there were some reports of higher staff costs and utility bills in the latest survey, it was encouraging to see that the overall rate of input cost inflation eased to a nine-month low.”

Meanwhile, recruiters in London have reported rising salaries for newly advertised positions more than at any point in the last six years.

Only three per cent of those surveyed said that starting salaries fell during February, versus 28 per cent that believe they are now on the rise.

“With permanent appointments rising at the strongest rate for almost four years, employers appear determined to show they are secure enough to make long-term commitments,” said KPMG head of business services Bernard Brown, who commissioned the study.

“All the indications are that any concerns over job security may be unwarranted. The simple fact is that employers wouldn’t be competing to offer candidates ever increasing salaries if they couldn’t afford to sustain them.”

Author: Christian Gray

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