Yorkshire and the Humber recorded the strongest business confidence of any UK nation or region in the UK in March, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in Yorkshire and the Humber reported higher confidence in their own business prospects month-on-month, up 33 points at 70%. When taken alongside their optimism in the economy – up 25 points to 50% – it gives a headline confidence reading of 60% (vs. 31% in February).
A net balance of 48% of businesses in the region expect to increase staff levels over the next year, up nine points on last month.
Looking ahead to the next six months, the region’s businesses identified their top target areas for growth as investing in their team, for example by hiring new staff or investing in training (50%), evolving their offering, for example by introducing new products or services (39%) and introducing new technology, such as AI or automation (39%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
National picture
Overall UK business confidence registered 42% in March, the same as in February, as firms’ confidence in their own trading prospects (49%) held steady, and confidence in the economy strengthened by one point (35%).
The North East (56%) was the second most confident UK region or nation in March after Yorkshire and the Humber, followed by London (52%).
Sector insights
Services confidence fell 5 points to 40%, the first decline since December. That drop, however, was offset by rises in confidence in the manufacturing, retail and construction sectors.
The gains in manufacturing (up 1 point to 41%) and construction (up 2 points to 40%) were relatively modest and confidence remained below levels seen at the start of 2024. Firms in the retail sector reported improved confidence (up 5 points to 45%), which was the strongest result for over two years.
Steve Harris, regional director for Yorkshire and the Humber at Lloyds Bank Commercial Banking, said: “Not only are many Yorkshire businesses seeing bright spots in the economy, but most are also confident that their own prospects will improve, even if headwinds persist – a testament to the region’s resilience. We could see optimism climb even higher if positive trends like slowing inflation continue over the coming months.
“As firms look to capitalise on this confidence, we’ll be by their side with our funding and support – whether it’s to back the investments in their team that so many have planned, or to help businesses capitalise on potentially transformative technologies.”
