Business confidence in Yorkshire dwindles amid uncertainty

Business confidence fell by 19 points to 0% across Yorkshire during February, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

Companies’ expectations of future business activity dropped since last month, when a balance of 31% anticipated an increase, with firms now evenly split on whether their business activity will increase or decrease in the next year.

When combined with their views on the economy overall, this gives an overall confidence figure of 0%.

Yorkshire businesses also pulled back on their hiring intentions with a net balance of 6% now expecting to hire more staff during the next year, down 10 points on last month.

Kelly Green, regional director for Yorkshire at Lloyds Bank Commercial Banking, said: “A number of different headwinds, including slowing growth across Europe and in China, are dampening the outlook for firms in the region this month. This is particularly true for those who export or rely on these markets in their supply chains.”

Across the region, a net balance of 2% 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, down six points on a month ago.

Green added: “Keeping on top of cash flow will be key for businesses to successfully navigate these challenges, sustain trading and invest in growth.

“We’ll be by the side of firms across every sector and size in the region to help them overcome any challenges that ahead and capitalise on opportunities. As part of this, we’ve committed to lend £1.4bn to local businesses in 2019.”