Yorkshire business confidence falls
Business confidence in Yorkshire & the Humber fell dramatically during July, according to a business barometer that surveys firms monthly.
Companies in Yorkshire reported lower confidence in their business prospects at 16%, which was 25 points lower than in June, and lower economic optimism at 22%, down six points since June.
Together, this gives an overall confidence measure of 19%, which is 16 points below last month’s figure of 35%, according to theBusiness Barometer from Lloyds Bank Commercial Banking.
As a result, companies reined in their recruitment plans for the year ahead, with 12% of businesses in the region now saying they expect to hire more staff during the next year, down 11 points on last month.
Steve Harris, regional director for Yorkshire at Lloyds Bank Commercial Banking, said: “With so much uncertainty, businesses are finding it difficult to accurately predict and plan for the future.
“It is difficult to pin point the causes for the disparity in Yorkshire confidence than that seen elsewhere. Despite the fact that exports from Yorkshire have grown in the past year, concerns about what a hard or no-deal Brexit may mean for the region, as well as the ongoing delays in devolution decisions together with a perceived lack of investment in transport could be dampening optimism towards future opportunities for those in the region.
“Where businesses are expecting changes in the months ahead, it’s increasingly important that they plan accordingly and manage their cash flow and working capital carefully to ensure they have the financial flexibility to respond to any threats or opportunities around the corner.”
Nationally, overall confidence edged ahead to 30%, up one point on June, as firms’ optimism about the economy rose two points to 25%. Businesses’ confidence in their own business prospects held steady at 34%.
The Business Barometer questions 1,200 businesses every month.
Across the region, 4% of businesses said they felt that the UK’s exit from the European Union was having a negative impact on their expectations for business activity. This contrasts to a net balance of six% that felt it would have a positive impact in June.
Overall, businesses in the West Midlands showed the most confidence, at 49%, ahead of London (47%) and the North West (38%).
