Business confidence in Yorkshire and the Humber was the strongest of any UK region or nation in June, 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 17 points at 33%, their optimism in the economy climbed 23 points to 62%. When taken together, this gives a headline confidence reading of 48% (vs. 45% in May) – the highest of any UK region or nation in June.
A net balance of 37% of businesses in the region also expect to increase staff levels over the next year, up eight points from May.
Looking ahead to the next six months, the region’s businesses identified their top target areas for growth as investing in their team (50%), for example through training, evolving their offering, for example by introducing new products or services (40%) and investing in sustainability (35%).
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 fell nine points in June to a net balance of 41%. However, this was consistent with levels seen during Q1 2024, before the sharp rise in May, and remained above the long-term average (28%).
While businesses reported lower confidence in both their own trading prospects, down 10 points to 44%, and the economy, down seven points to 39%, both remained robust.
The North East (47%) closely followed Yorkshire and the Humber as the second-most confident UK region or nation in June, along with the East Midlands (46%).
Sector insights
Results across the sectors were mixed in June as three of the four sectors saw a decline in trading prospects. Construction fell 16 points to 42% and there were other notable decreases in retail (down 14 points to 35%) and services (down 11 points to 46%). Manufacturing however, bucked this trend, increasing by two points to 51%.
Martyn Kendrick, regional director for Yorkshire and the Humber at Lloyds Bank Commercial Banking, said: “Yorkshire’s businesses are taking a range of steps to build resilience and position themselves for growth. It’s particularly encouraging to see sustainability as one of their key focus areas.
“We’ll be by the side of the region’s businesses as they target new opportunities with our insight and support, including discounted lending for green purposes like new low carbon transport through our Clean Growth Financing Initiative.”
