Yorkshire business confidence falls while Brexit optimism grows

Business confidence in Yorkshire fell eight points during April to reach 29%, according to a report released today.

The latest Business Barometer from Lloyds Bank Commercial Banking shows that companies in Yorkshire reported lower confidence in their business prospects at 30% and lower economic optimism at 27%.

Together, this gives an overall confidence of 29%, which is eight points below last month’s figure of 37%.

Across the region, a net balance of five per cent of businesses said they felt that the UK’s exit from the European Union was having a positive impact on their expectations for business activity. This compares with a net balance of 12% who felt that it would have a negative impact in January.

Companies’ hiring intentions showed that a net balance of 21% of businesses in the region expect to hire more staff during the next year, down eight points on last month.

Nationally, overall confidence remained unchanged at 32%, although firms’ confidence in their own business outlook fell five points to 31%.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

Kelly Green, regional director for Yorkshire at Lloyds Bank Commercial Banking, said: “While Yorkshire firms’ confidence has dropped since last month, it still remains robust in comparison with other regions, and is broadly in line with the sentiment felt at national level.

“This week also marks a new chapter in Yorkshire’s democratic history, with the election of the Sheffield City Region’s first ever mayor. Firms in the south of the region will particularly be keen to see whether the successful candidate can deliver economic development, regeneration and transport improvements across the region.”