London’s private sector continued to grow strongly in September, remaining the best-performing UK region, despite a more challenging economic backdrop, NatWest has found.

The bank’s London Growth Tracker report found that business activity remained firmly in growth territory, with the London Business Activity Index standing at 53.7 in September.

While this is slightly down from 54.9 in August, NatWest said this signals a solid expansion in activity across the capital’s private sector, with the region recording the strongest business growth of any UK nation or region.

Employment also returned to growth in September, as staffing levels increased for the first time since October 2025 to the strongest rate for almost two years.

NatWest stated that while new business growth softened and reached its weakest level in 14 months, companies continued to report rising workloads and new customer wins.

Firms also cited healthy sales pipelines and improving international business conditions as reasons for confidence.

Regional managing director, commercial mid-market, London & South East at NatWest, Catherine van Weenen, concluded: "London businesses continue to show impressive resilience. Despite ongoing economic uncertainty, the capital remains the strongest-performing region in the UK, with firms still growing, hiring and looking ahead with confidence.

"It's particularly encouraging to see employment increase for the first time in almost a year. Businesses are continuing to invest in their future, supported by healthy pipelines and improving international conditions.

"Despite cost pressures remaining a challenge, overall London's private sector has entered the final quarter of the year in a strong position."

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