Business confidence in Yorkshire rises for first time this quarter

Although business confidence in the region rose by one point to 3 per cent, the Yorkshire figure is still lower than that of the country as a whole, where business confidence is around 10 per cent.

The survey, which questions 1,200 businesses monthly, was conducted between 1st-15th November, before the Chancellor’s Autumn Statement announcement on Thursday, November 17.

Steve Harris, regional director for Yorkshire at Lloyds Bank Commercial Banking, said: “Yorkshire firms have not been immune to recent issues, and have faced a particularly challenging few months with rising costs and wide turbulence in the economy.

“Despite this, it’s good to see businesses remaining optimistic about their own trading prospects as we head into one of the busiest periods of the year.

“In the current economic environment, keeping margins on tight reins while closely monitoring cashflow will allow firms to plan ahead and carefully consider which opportunities they capitalise on.”

The survey also found that companies in Yorkshire reported higher confidence in their own business prospects month-on-month, up seven points at 19 per cent. 

When taken alongside their optimism in the economy, down three points to 12 per cent, this gives a confidence reading of 3 per cent. 

Yorkshire businesses identify top growth opportunities as evolving their product or service offering (37 per cent), investing in sustainability (29 per cent), and growing their workforce (28 per cent).

23 per cent of businesses in the region expect to increase staff levels over the next year, down one point on last month.

Despite a seven-point dip, businesses nationally remained positive about hiring intentions, with 14 per cent of firms aiming to create new jobs in the next 12 months.

Overall, UK business confidence fell five points during November, but remained positive at 10 per cent.

Firms’ outlook on their future trading prospects was down two points to 25 per cent, and their optimism in the wider economy dropped four points to 2 per cent.

All UK regions and nations, apart from the South East, reported a positive confidence reading in November, with seven recording a month-on-month increase in confidence.

Of those recording an increase in confidence, Scotland, Wales and the South West saw the largest monthly changes, with Scotland now the most optimistic overall.

Business confidence in retail increased to 15 per cent, up from 9 per cent.

However, business confidence in the manufacturing sector fell for the sixth month in a row, to 4, down 9 points, the lowest confidence level since early 2021.

The construction sector held gains made in October, remaining unchanged at 20 per cent, although this level still remains weaker than in the first half of the year.

The Business Barometer’s measure of overall business confidence is the average of responses about how businesses regard the economic outlook and their own trading prospects.