LONDON businesses are sweating over the coming recession and sticky inflation, but they are still among the most confident in the UK, a survey out today reveals.

Optimism among the capital's firms slumped 27 points over the last month to 22 per cent, one of the biggest falls on record, according to Lloyds Bank's business barometer.

Despite the huge drop, London firms are the second most confident in the UK, indicating they believe Brits will continue to spend during the economic slowdown.

Becci Wicks, regional director for London at Lloyds Bank commercial banking, said: "While it's disappointing to see London firms' confidence take a knock, overall they remain optimistic about their trading prospects and what the year ahead will bring."

Hiring intentions slowed to a net balance of plus 16 per cent, down 24 points, Lloyds Bank said.

Overall UK business confidence dropped five points, a much flatter fall compared to London, down to 10 per cent.

(c) 2022 City A.M., source Newspaper