New research from Lloyds Bank has found that a third (33%) of firms in London are making New Year’s resolutions to improve their productivity, as businesses signal confidence in more positive macroeconomic conditions ahead. This optimism about the future comes after 2023 being a tough year for businesses, as they faced into high inflation and a sluggish economy.

The data revealed the top three areas where firms are focusing their attention as they head into the new year, with two fifths (38%) boosting staff training, a third (34%) concentrating on developing their business and another third (31%) planning to invest in new technology.

As businesses take stock of 2023, many are reporting they are looking at ways to ensure they have a healthy cashflow, with more than a quarter (28%) of firms reporting plans to keep a closer eye on costs over the next 12 months.

The data also shows that businesses are setting themselves up for growth, by building teams to support new opportunities, with two fifths (41%) expecting to hire more staff in the New Year.

With the expectation of inflation continuing to fall, almost three quarters (71%) of firms are confident that they will see their business become more profitable in 2024 compared to 2023.

Three fifths (60%) expect their turnover to increase in 2024. Of those expecting an increase in turnover, a quarter (25%) anticipate growth of 5%-10% and more than one in ten (14%) have eyes on growth of 11%-20%.

Paul Evans, regional director for London at Lloyds Bank, said: “London firms have had a successful 2023, and it’s encouraging to see them planning to build on that in 2024. Although businesses will be hoping demand for services levels out further, falling inflation and stabilising interest rates are creating an environment where firms feel more confident to invest and drive growth.

“Firms that are taking the time to implement plans and carefully manage their cashflow will ensure they are ready to benefit from new opportunities and to tackle any headwinds they may have to navigate.

“Staff training and new technology look to be the areas where the capital’s firms are spying opportunities to boost productivity. We’ll continue to by their side to help businesses in London capitalise on new growth opportunities that come in the new year.”