Business confidence in Yorkshire and the Humber rose eight points during December to 28%, according to the latest Business Barometer from Lloyds.
Companies in the region reported higher confidence in their own business prospects month-on-month, up 10 points at 47%. When taken alongside their optimism in the economy, up seven points to 9%, this gives a headline confidence reading of 28% (vs. 20% in November).
A net balance of 25% of businesses in the region also expect to increase staff levels over the next year, down five points on last month.
Looking ahead to the next six months, Yorkshire businesses identified their top target areas for growth as investing in their team, for example through training (37%), evolving their offering, for example by introducing new products or services (35%) and entering new markets (35%).
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 fell two points in December to 39%, although remained above the long-term average of 29%.
While firms’ confidence in the wider economy strengthened five points to 31%, their confidence in their own trading prospects fell eight points to 47%.
London was the most confident UK nation or region in November (53%) for a second month in a row, followed by the North West (50%).
Sector insights
Although confidence fell in the service sector, this was partly offset by rises in manufacturing and retail, with these sectors swapping places in December.
Services fell from 46% to 35% in December – a fall of 11 points. In contrast, manufacturing and retail increased 10 points to 42% and 43% respectively, thereby taking manufacturing and retail above services for the first time in 4 months.
Trading prospects for retail rose for the first time in three months, while construction confidence was steady at 41%, equalling last month’s result.
Martyn Kendrick, regional director for Yorkshire and the Humber at Lloyds, said: “After a drop last month, business confidence in Yorkshire is rising again, driven by greater optimism from businesses around their own trading prospects.
“With many companies planning to make investments in areas like upskilling their workforce and breaking into new markets, there’s a clear focus on further growth. We’ll remain by the side of the region’s businesses to support their plans and ambitions.”
