Business confidence in Yorkshire rose three points during February to 51%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in Yorkshire reported higher confidence in their own business prospects month-on-month, up 12 points to 54%. When taken alongside their optimism in the economy, which dipped seven points to 48%, this gives a headline confidence reading of 51%.
The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. This month’s survey captured responses between 1st and 15th February before the removal of various COVID restrictions across the UK’s nations.
A net balance of 53% of businesses in the region expect to increase staff levels over the next year, the joint highest of all UK regions and nations, up a significant 24 points, the joint highest climb on last month.
Overall UK business confidence saw an uptick in February, rising five points from January’s reading of 39% to 44% – its highest level since last September. Firms remained positive about their future trading prospects, with a four-point increase month-on-month to 45%, while optimism in the economy overall also increased by five points to 43%. The net balance of businesses planning to create new jobs rose by nine points to 38%.
Every UK nation and region maintained a positive overall confidence reading in February. The North East (up 17 points to 57%), South West (up nine points to 46%) and West Midlands (up eight points to 47%) saw the biggest increases month-on-month, with the North East reporting the highest levels of business confidence overall. Only the North West (which remained unchanged at 44%) and Scotland (down two points to 35%) did not have higher confidence readings than last month.
Steve Harris, regional director for Yorkshire at Lloyds Bank Commercial Banking, said: “It is very encouraging to see the confidence of Yorkshire’s SMEs continue to grow this month. Our region’s resilient businesses continue to weather the complex storm of the COVID-19 pandemic, price rises and inflation, and keep investing in growth.
“With spring around the corner, Yorkshire’s thriving hospitality and leisure sector will be hoping for an uptick in tourists from the UK and further afield to further boost morale.”
The further easing of COVID restrictions in January had a positive impact across the sectors with strong increases in manufacturing (up 11 points to 54%) and construction (up 18 points to 51%) with both reaching their highest level since the start of the pandemic. Retail confidence rose three points to 47%, another high since the start of COVID. Services remained unchanged at 38%.
Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “It’s extremely encouraging to see a such an improvement in business confidence reaching its highest level since September, fuelled by trading prospects reaching their highest level since the start of pandemic.
“With hiring intentions also reaching their highest level since the end of the furlough scheme there is hope that the easing of supply bottlenecks will alleviate a number of challenges that businesses have been facing and help underpin the UK’s growth in 2022.”
