London job cuts ease as business activity grows in July – NatWest

London businesses reduced headcounts at the slowest rate so far this year in July as stronger activity and improving confidence prompted some firms to make selective hires.

The latest NatWest London PMI found that employment continued to fall during the month, with businesses largely reducing staff numbers through natural attrition.

However, the rate of decline was the weakest for seven months, while some firms reported selective recruitment as part of strategic investment plans.

The improvement came as business activity across the capital expanded at a faster pace, with the headline London Business Activity Index rising from 54.1 in June to 55.3 in July.

The increase marked a second consecutive monthly acceleration in output growth, with businesses reporting higher levels of new work and a rebound in European markets.

Catherine van Weenen, NatWest’s regional managing director, commercial mid-market, London and South East, said: “London businesses benefitted from solid sales growth and a tempering of price pressures in July, which led to the fastest rate of output growth in three months.

“This spurred an uptick in future expectations, with many firms prioritising investment as they expect sales revenues to grow.