Business confidence in Yorkshire rose sharply in May, with more firms planning to expand their workforce and invest in growth, according to Lloyds Bank’s latest Business Barometer.
Confidence among Yorkshire businesses climbed by 18 points to 52%, significantly higher than the national average. Notably, 54% of regional firms now plan to increase staff over the coming year, up 35 points from April, signaling renewed optimism across the local economy.
The report also highlighted where businesses are prioritising growth. Nearly half of the surveyed firms in Yorkshire intend to invest in staff training, while 33% are eyeing entry into new markets or adopting new technology, both key indicators of strategic scaling and operational improvement.
At a national level, UK business confidence rose to 50%, the highest recorded since August 2024. Economic optimism jumped by 16 points to 44%, while firms’ confidence in their trading prospects also increased to 56%.
Sector performance was uneven. Construction and services reported the strongest sentiment, 56% and 54% respectively, while retail confidence declined to 40%, its lowest level since January. Manufacturing also edged up, though modestly, to 40%.
The positive regional results come amid mixed signals globally. While the IMF flagged potential drag from US tariffs, it upgraded the UK’s 2025 economic forecast, noting signs of a broader recovery.
