Business confidence in Yorkshire rose 18 points during May to 52%, according to the latest Business Barometer from Lloyds.
Companies in Yorkshire reported higher confidence in their own business prospects month-on-month, up 14 points at 59%. When taken alongside their optimism in the economy, up 23 points to 46%, this gives a headline confidence reading of 52% (vs. 34% in April).
A net balance of 54% of businesses in the region also expect to increase staff levels over the next year, up 35 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 by investing in training (45%), entering new markets (33%) and introducing new technology (33%).
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 increased 11 points in May to 50% – its highest level since August 2024.
Firms’ optimism in their own trading prospects strengthened six points to 56%, while their confidence in the wider economy also climbed 16 points to 44%.
The East Midlands was the most confident UK nation or region in May (66%), followed closely by the North East (65%).
Sector insights
Construction firms’ confidence rose to a nine-month high of 56%, while those in the service sector reported a one-year high of 54%. Manufacturing confidence also rose by two points to 40%. However, retail confidence fell by five points to 40%, the lowest level since January this year.
Martyn Kendrick, regional director for Yorkshire and the Humber at Lloyds, said: “The warmer weather has brought with it a sunnier outlook for Yorkshire’s business, with greater optimism from firms in both their own trading prospects and the wider economy.
“It’s encouraging to see local businesses pursuing growth by expanding their teams and investing in training and development to build long-term success. We’re committed to working alongside them to support steps like these – offering the insights and funding they need to seize new opportunities and achieve their ambitions.”
