Business confidence in Yorkshire and the Humber fell 19 points during November to 20%, according to the latest Business Barometer from Lloyds.
Companies in Yorkshire and the Humber reported lower confidence in their own business prospects month-on-month, down ten points at 37%. When taken alongside their optimism in the economy, down 28 points to 2%, this gives a headline confidence reading of 20% (vs. 39% in October).
However, a net balance of 30% 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 or services (29%), investing in their team, for example through training (27%), and introducing new technology such as automation and AI (27%).
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 dipped slightly in November to 41% – down three points from October’s 44% – but remained above the long-term average of 29%.
While firms’ confidence in their own trading prospects strengthened two points to a net balance of 55%, their confidence in the economy fell nine points to 26%.
London was the most confident UK nation or region in November (57%), followed by the West Midlands (51%).
Sector insights
Firms in the manufacturing sector reported the first rise in trading prospects in four months, with the net balance up three points to 49%. Companies in construction and services also indicated stronger business growth outlooks with net balances of 56% (up six points) and 61% (up four points), respectively.
Retail firms, however, signalled softer prospects for a second month running, with the trading prospects’ net balance down six points at 45%.
Martyn Kendrick, Regional Director of Yorkshire and the Humber at Lloyds, said: “While confidence is down this month, Yorkshire’s businesses have clear plans for growth and more plan to hire – a move that won’t just benefit them, but also their local communities.
“We’ll remain by their side as they put their strategies into action, with on-the-ground support to help them make the most of any new opportunities that lie ahead.”
Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: “In November, the overall confidence metric fell by three points for the third month running. This is the lowest level since June, but still above the survey’s long-term average, which is ultimately positive from a longer-term perspective.
“These results suggest that while firms have mixed views about the economy, they see their businesses in a good place to cope with any challenges they might face. Hiring intentions, although moderating this month, haven’t fallen by much which is also positive news.
“Overall, these results show that businesses are still positive and feeling resilient, albeit with tempered views on the economic outlook.”
