Lloyds Bank’s Business Barometer for March 2023 shows:
- Business confidence in Yorkshire remains in positive territory, despite dip to 30%
- Yorkshire businesses identified their top target areas for growth in the next six months as evolving their offer (54%), diversifying into new markets (32%) and introducing new technology (30%)
- Overall, UK business confidence in March reached its highest level since May last year, with eight out of 11 regions and nations reporting higher levels of confidence than February
Business confidence in Yorkshire fell four points during March to 30%, according to the latest Business Barometer from Lloyds Bank Commercial Banking – conducted between the 1st – 15th March ahead of the Chancellor’s Spring Budget on Wednesday 15th March.
Companies in Yorkshire reported higher confidence in their own business prospects month-on-month, up 15 points at 52%. When taken alongside their optimism in the economy, down 24 points to 8% 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, (54%), diversifying into new markets (32%) and introducing new technology (30%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.
A net balance of 26% of businesses in the region expect to increase staff levels over the next year, down 24 points on last month.
Overall UK business confidence climbed 11 points to 32% in March, with firms reporting their highest confidence levels since May last year.
On average, firms felt positive about their own trading prospects with 39% of firms expecting business activity to increase in the next 12 months, up eight points on last month and 25% said they would increase staff levels by this time next year, up five points month-on-month.
Every UK region and nation had a positive confidence reading in March, with eight out of 11 regions recording a month-on-month increase in confidence. For the second month in a row the West Midlands reported the highest levels of business confidence at 48% (unchanged month-on-month), followed by Scotland (up 24 points), London (up 20 points), and the North East (up two points) all at 38%.
Steve Harris, regional director for Yorkshire at Lloyds Bank Commercial Banking, said:
“It’s fantastic to see that so many Yorkshire firms are feeling optimistic about their own business prospects and are putting plans in place to seize opportunities for growth. And with additional investment touted for the region in the Spring Budget, firms will be hoping that more opportunities will be set to come their way.
“We will remain side by side with Yorkshire firms to help them identify areas of potential growth and support them with the resources and tools they may need to boost their business potential.”
There was a broad rise in business confidence across the sectors, particularly in construction (47% up 28 points) and manufacturing (37% up ten points) both at a ten-month high and retail (32% up 11 points) the highest since February 2022.
Hann-Ju Ho, Senior Economist Lloyds Bank Commercial Banking, said:
“Business confidence has seen a surge this month with economic optimism and trading prospects bolstering firms. With hiring intentions improving, we may see employment growth picking up in the coming months. Tentative signs of easing wage pressures suggest that businesses’ difficulties in finding staff may have started to ease.
“Although the measures in the Budget were widely trailed, it is yet to be seen what the full impact of the Chancellor’s announcement, along with the surprise rise in inflation and recent increase in interest rates, will have had on business confidence.”
