Business confidence in Yorkshire remained strong in April at 30% for the second consecutive month, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in Yorkshire reported lower confidence in their own business prospects month-on-month, down 11 points at 41%. When taken alongside their optimism in the economy, up 13 points to 21%, this gives a headline confidence reading of 30%.
Yorkshire businesses identified their top target areas for growth in the next six months as evolving their offer (41%), investing in their team (35%) and investing in sustainability (29%). The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. A net balance of 7% of businesses in the region expect to increase staff levels over the next year, up 13 points on last month.
Overall, UK business confidence climbed one point to 33% in April. Every UK nation and region reported a positive confidence reading and six out of 11 regions recorded a higher reading than last month. London reported the highest levels of business confidence at 47% (up nine points month-on-month), followed by East Midlands (up 18 points) and North East (up three points), both at 41%.
Firms’ outlook on their own trading prospects remained strong at 39% for the second consecutive month, and a net balance of 27% of businesses are intending to increase their staff levels, up two points on March.
Ahead of the three Bank Holidays in May, firms’ optimism in the overall economy increased five points to 28% – the highest reading since June last year.
Steve Harris, regional director for Yorkshire at Lloyds Bank Commercial Banking, said: “It’s great to see business confidence in Yorkshire remain strong in April as businesses make ambitious plans for growth, with many looking to bolster revenue streams by evolving their offering.
“We’re committed to supporting businesses to achieve their plans for growth by providing them with practical advice to help firms manage their cashflow and working capital as they discover new avenues of development.”
Business confidence in the service sector rose to 36% this month, the highest since May 2022, with sentiment particularly upbeat in hospitality and financial services. While the other sectors saw slight decreases, construction remained strong at 43% while manufacturing and retail remain above last year’s lowest levels.
Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “The recent increases in business confidence indicate that the economy entered the second quarter of 2023 with positive momentum.
“The revival in the demand for labour, which improved for the fifth consecutive month, may account for the modest uptick in wage expectations for the next twelve months.
“While firms’ concerns on overall cost pressures have eased, there is little evidence that pricing expectations have declined which may impact wider pricing decisions for the remainder of 2023.”
