Business confidence in Yorkshire fell two points during September to 30%, according to the latest Business Barometer from Lloyds.
Companies in the region reported lower confidence in their own business prospects month-on-month, down nine points at 41%. When taken alongside their optimism in the economy, up four points to 18%, this gives a headline confidence reading of 30% (vs. 32% in August).
A net balance of 27% of businesses in the region also expect to increase staff levels over the next year, up nine points on last month.
Looking ahead to the next six months, Yorkshire businesses identified their top target areas for growth as investing in their team, for example through training (40%), introducing new technology (32%) and evolving their offering, for example by introducing new products and services (31%).
The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.
National picture
Overall, UK business confidence fell 12 points in September to 42%.
Firms’ confidence in their own trading prospects fell 12 points to 51%, and their optimism in the wider economy fell 11 points to 33%.
The North East was the most confident UK nation or region in September, climbing 13 points to 68%, followed by London (57%).
Sector insights
Firms across manufacturing, construction, retail and services all saw confidence fall this month. The biggest change was in manufacturing with a decline of 31 points to 31%, a two-year low. Retail sentiment fell 17 points to 40%, its lowest level in four months.
Similarly, confidence in the service sector fell six points to 47%, the lowest reading since April. Construction continued to decline for the fourth consecutive month, dropping 5 points to 35%.
Martyn Kendrick, regional director for Yorkshire and the Humber at Lloyds, said: “While confidence has fallen, it’s encouraging to see firms continuing to prioritise investments in their people through hiring and training.
“This focus on long-term growth reflects the resilience and forward-thinking approach of businesses across the region. We’ll continue to provide our on-the-ground support as they press ahead with their plans.”
