Yorkshire firms’ confidence in their own trading prospects strengthened in July, however weaker optimism in the economy meant the region’s overall business confidence fell month-on-month, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies’ confidence in their own business prospects climbed 12 points to 45% in July. However, when taken alongside their optimism in the economy, down 35 points to 27%, this gives a headline confidence reading of 36% (vs. 48% in June).
The Business Barometer also found that a net balance of 45% of businesses in Yorkshire and the Humber expect to increase staff levels over the next year, up eight points on last month.
Looking ahead to the next six months, Yorkshire businesses identified their top target areas for growth as investing in their teams, for example through training (40%), introducing new technology (29%) and evolving their offering, for example by introducing new products or services (24%).
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 climbed nine points in July to a net balance of 50% – the same as in May when confidence reached an eight-year high.
Businesses’ confidence in their own trading prospects rose 12 points to 56% – the highest reading since April 2017. Meanwhile, confidence in the economy climbed six points to 45%.
Wales and the East Midlands (both 62%) were the joint-most confident UK regions or nations in July, followed by the East of England (61%).
Sector insights
There was an improvement across all sector categories this month – most notably in retail which rose by 25 points to a post-pandemic high of 60%. There were also significant gains in manufacturing trading prospects, with the net balance increasing by 9 points to a two-year high. Services rose 10 points to 56%, while construction saw a more modest increase by 2 points to 44%.
Martyn Kendrick, regional director for Yorkshire and the Humber at Lloyds Bank Commercial Banking, said: “While overall confidence has fallen since June, it’s hugely encouraging that Yorkshire’s businesses are more optimistic when in it comes to their own prospects – a reflection of their resilience and the work they’ve done to position themselves for growth.
“We’ll be by their side as they pursue their ambitious – whether that’s supporting investments in their team, hiring new staff or implementing new technology.”
