Business confidence in Yorkshire fell four points during July to 45%, according to the latest Business Barometer from Lloyds.
Companies in Yorkshire reported lower confidence in their own business prospects month-on-month, down seven points at 54%. When taken alongside their optimism in the economy, down one point to 36%, this gives a headline confidence reading of 45% (vs. 49% in June).
However, a net balance of 47% of businesses in the region expect to increase staff levels over the next year, up eight points on last month.
Looking ahead to the next six months, Yorkshire businesses identified their top target areas for growth as evolving their offering, for example by introducing new products and services (48%), entering new markets (43%) and introducing new technology, such as AI or automation (43%).
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 one point in July to 52% – its highest level since 2015 and the third consecutive monthly increase.
Firms’ optimism in their own trading prospects rose one point to 58%, while their confidence in the wider economy increased two points to 47%
Wales was the most confident UK nation or region for the second month in a row (76%), followed by the North East (73%).
Sector insights
July saw the service sector’s confidence increase by 11 points to 61%, one of the main drivers behind this month’s overall increase in business confidence, indicating strong momentum in the sector. This gain was partially offset by declines in other areas, with retail firms down eight points, manufacturers down four points and the construction sector down six points.
Martyn Kendrick, regional director for Yorkshire at Lloyds, said: “Despite a fall in confidence, it’s encouraging to such clear growth plans from Yorkshire’s firms. Many businesses are planning to grow their teams, launch new products and services, and explore new markets in the months ahead, and we’ll continue to be ready with our on-the-ground support to help them take these steps.”
