Yorkshire businesses confident about own prospect despite UK economy worries

Confidence among businesses in Yorkshire and the Humber has increased at the start of the year, but lower optimism about the UK economy, according to the Business Barometer from Lloyds Bank Commercial Banking.

Companies in the region reported higher confidence in their business prospects at 31%, seven points up on last month, though economic optimism fell three points to 8%.

Together, this resulted in overall business confidence rising two points to 19% in January.

Across Yorkshire and the Humber, a net balance of 8% of businesses said they felt that the UK’s exit from the EU was having a negative impact on their expectations for business activity, up one point on a month ago.

Meanwhile, businesses’ hiring intentions showed that a net balance of 16% of firms in the region expect to hire more staff during the next year, which is down 12 points on last month, but remaining above the UK average of 13%.

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: “Firms might be less optimistic about macro trends in the economy and the potential impact of Brexit, but it’s encouraging to see that this hasn’t dampened how they see their own trading prospects for the year ahead.

“Businesses are right to be cautiously positive, and they can be reassured that the finance is there to help them scale-up capacity and to take advantage of whatever market opportunities they might come across this year.

“Earlier this month, we announced our commitment to lend up to £1.4bn in the region during 2019. Whatever happens, we’ll be by the side of Yorkshire firms.”