Just half of London companies have expressed confidence that they are 'very likely' to survive the recession in a survey of directors that reveals the scale of difficulties faced by businesses in the capital.

The snapshot of weakening corporate confidence produced by the London Chamber of Commerce and Industry has found that one in eight companies either did not know or thought they were fairly or very unlikely to emerge from the downturn.

A little more than a third of companies said they were 'fairly likely' to ride out the economic storm. The report also illustrates the increasing credit headaches, with 30% of respondents reporting difficulty in accessing finance.

Overall, almost 70% said the recession had already had a negative impact on their businesses, although 12% said the downturn was having a positive effect.

Financial Times