Business confidence in Yorkshire and the Humber rose five points during August to 41%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
While companies in Yorkshire and the Humber reported lower confidence in their own business prospects month-on-month, down six points to 39%, their confidence in the economy climbed 15 points to 42%. Taken together, this gives a headline confidence reading of 41% (vs. 36% in July).
Looking ahead to the next six months, Yorkshire and the Humber businesses identified their top target areas for growth as investing in their team, for example through training (45%), evolving their offering, for example by introducing new products or services (38%), and introducing new technology (25%).
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 in August remained unchanged from July at 50%.
Firms’ confidence in the overall economy increased two points to 47%, offsetting marginally weaker confidence in their own trading prospects, which fell two points month-on-month to 54%, although remained above the long-term average.
The North East was the most confident UK nation or region in August (65%), followed closely by Scotland (64%).
Sector insights
Output expectations for the various sectors remained at or near their three-year highs. Construction had a steep increase to 58%, up by 14 points, whereas other sectors experienced slight declines. Trading prospects for manufacturing dropped by 2 points to 58%, at the same level as construction, while Retail and Services fell to 53% down 7 and 3 points respectively.
Martyn Kendrick, regional director for Yorkshire and the Humber at Lloyds Bank Commercial Banking, said: “It’s hugely positive to see business confidence growth this month after a dip in July.
“Businesses will now be looking to capitalise on their brighter outlook, and we’ll be by their side every step of the way – whether that’s supporting plans to upskill their teams, or diversifying their range of products and services.”
