Business confidence in Yorkshire rose 10 points during February to 39%, according to the latest Business Barometer from Lloyds.
Companies in Yorkshire reported higher confidence in their own business prospects month-on-month, up 14 points at 53%. When taken alongside their optimism in the economy, up eight points to 26%, this gives a headline confidence reading of 39% (vs. 29% in January).
A net balance of 38% of businesses in the region also expect to increase staff levels over the next year, up 12 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 (48%), introducing new technology, such as automation or AI (35%), and evolving their offering, for example by introducing new products and services (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 rose 12 points in February to 49% — its highest level since August 2024.
Firms’ optimism in their own trading prospects increased six points to 57%, while their confidence in the wider economy rose 18 points to 42%.
The North East was the most confident UK nation or region in February (69%), followed by the North West and East of England, both at 61%.
Sector insights
All four sectors surveyed saw double-digit increases in confidence. The largest improvements were seen in manufacturing, which rose by 13 points to 51%, and construction, which increased by 14 points to 50%. Retail also experienced a significant gain, up 11 points to 51%, and services rose by 10 points to 48%.
Within the services sector, hospitality firms posted a particularly strong rebound in sentiment. Confidence across these sectors reached their highest levels in several months, ranging from four months in services to seven months in manufacturing.
Martyn Kendrick, regional director for Yorkshire and the Humber at Lloyds, said: “It’s encouraging to see business confidence in Yorkshire continue to rise for a third month in a row, and particularly good to see such a positive outlook from the region’s firms when it comes to their own trading prospects.
“As businesses look ahead to further growth, we’ll be supporting them with the tools and funding they need to make the most of any new opportunities – whether that’s by hiring new staff, or making investments in team development.”
