Business confidence on the rise across Yorkshire and the Humber

Business confidence in Yorkshire and the Humber rose six points during October to 17% as firms’ trading outlook and hiring intentions both improved on last month, according to the latest Business Barometer from Lloyds Bank.

A net balance of 29% of Yorkshire companies now expect their business activity to increase in the year ahead, compared with a balance of 1% who expected it to decrease a month ago.

This was despite the fact that firms’ economic optimism fell 18 points to 4%, weighing on overall business confidence.

Companies’ hiring intentions also rebounded, with a net balance of 15% of businesses in the region now expecting to hire more staff during the next year. Last month, a net balance of 1% of firms expected to decrease their headcounts.

Nationally, overall confidence fell 10 points to 19%, its sharpest fall and its lowest level all year, as firms’ optimism about the economy slumped 18 points to just 8%. Companies’ confidence in their own business prospects fell three points to 29%.

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 and the Humber at Lloyds Bank Commercial Banking, said: “This month’s fall in economic optimism suggests firms are feeling nervous as uncertainty persists in the run up to the Brexit deadline next year.

“But it’s reassuring to see that, despite this, businesses’ confidence in their own prospects has rebounded since taking a knock in September and they are planning to act on that by creating new jobs. It will be prudent for firms to consider all Brexit eventualities to reduce any disruption to trading as the country realigns itself outside of the EU.”

Across the region, a net balance of 3% 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, unchanged since last month.

Meanwhile, a net balance of 34% said they would be more confident about their business prospects if a deal on Brexit was agreed in November.