Pessimism about the economy among London firms is at its highest since the onset of the Iraq War, a new report suggests.
According to the London Chamber of Commerce (LCC), 9 per cent more companies believed the UK economy would worsen during the next 12 months than those who predicted an improvement.
As a result, businesses were the most negative about the future since the first quarter of 2003, when over half of firms predicted doom and gloom in advance of the war in Iraq.
Predictions for the London economy were equally grim with just 2 per cent more firms confident it would improve than those forecasting deterioration.
The gloom also extended to unemployment, with just 9 percent anticipating improved job levels.
LCC President Derek Sach said: "Businesses continue to be very uncertain about the economic outlook in 2005."
"Consumer spending and house prices are both looking less than robust. Until we know more about where these key indicators are headed in the medium-term, business confidence is unlikely to return."
Ironically, businesses were more confident about their own prospects than the economy as a whole. A balance of plus 35% expected good things over the next year, while almost half said their business output rose during December.
