Business confidence in Yorkshire rose 19 points during December to 22%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the region reported higher confidence in their own business prospects month-on-month, up 17 points at 36%. When taken alongside their optimism in the economy, up 19 points to 7%, this gives a headline confidence reading of 22%.
Yorkshire businesses identified their top target areas for growth in the next six months as evolving their offering (44%), investing in their teams (41%) and diversifying into new markets (34%).The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.A net balance of a fifth of Yorkshire businesses (20%) expect to increase staff levels over the next year, down three points on last month.Overall UK business confidence rose seven points during December to 17%. The proportion of businesses that felt positive about the wider economy was up 10 points month-on-month to 8%, while their outlook on their own future trading prospects increased by two points to 27%. Businesses also remained optimistic about job creation, with 16% of firms planning to hire more staff in the next 12 months – up two points on November.All UK regions and nations reported a positive confidence reading in December, for the first time since July, with eight out of 11 recording a month-on-month increase in confidence. Of those, the North West (up 31 points to 40%), North East (up 24 points to 34%) and South East (up 23 points to 14%) saw the largest monthly increases, with the North West now the most optimistic overall.Steve Harris, regional director for Yorkshire at Lloyds Bank Commercial Banking, said: “At the end of another turbulent year that presented a fresh set of challenges for Yorkshire businesses, it’s pleasing to see many approach 2023 with cautious optimism and targeting new opportunities to grow.“Those eyeing up expansion, be it by growing their team or entering new markets, should keep a watchful eye on cash flow so they are well placed to capitalise on any opportunities that come their way.“Whatever their sector and priorities, we’ll remain by their side to help ensure a prosperous year ahead.”
