According to new data from the West & North Yorkshire Chamber of Commerce, business optimism in Yorkshire’s manufacturing sector has fallen to its lowest point since the COVID-19 lockdowns.
The Chamber’s Quarterly Economic Survey for Q1 2025 highlights a significant decline in performance among manufacturers, with both domestic and international sales reported to be down. Many businesses are responding by implementing job cuts and recruitment freezes. Order books are at their weakest since 2020, and export activity has also seen a downturn.
In contrast, the region’s service sector has experienced a more positive quarter, with stronger domestic sales, increased investment intentions, and rising confidence in future profitability. The service sector’s performance has exceeded the national average in some areas.
Taxation continues to be the most pressing financial challenge for businesses, with the cost of labour also consistently identified as a major concern. The survey was conducted just before upcoming increases in National Insurance Contributions and the Minimum Wage and the threat of new US tariffs on global trade.
