London firms have high hopes for the Olympics

More than nine out of 10 of the capital's businesses believe that next year's Olympics will boost London's international standing, and three quarters are looking forward to the Games.

However, that contrasts sharply with their views on the overall economy and the prospects for their own businesses. The twice-yearly CBI/KPMG survey showed a drop from 43% to 13% in businesses who are more optimistic about the economy than they were six months ago.

Sara Parker, CBI London region director, said: "It's good news that the majority of the capital's companies are now thinking about planning for the Games, but there is still more work to be done over coming months to make sure transport, staffing and security issues are ironed out."

London companies believe the Olympics, which will feature stars such as Usain Bolt, pictured, will have a number of benefits: boost tourism (89%), give a positive image of east London (78%) and improve transport (62%). But 43% say not enough is being done to ensure the long-term legacy from the Games.