Yorkshire business confidence holds steady in October

Business confidence in Yorkshire & the Humber fell two points during October to 5% according to the latest Business Barometer from Lloyds Bank Commercial Banking.

Companies in the region report higher economic optimism, which rose three points to 5%, but lower confidence in their trading prospects, which fell six points to 6%.

But businesses’ hiring intentions took a knock with a net balance of -6% of businesses in the region expecting to hire more staff during the next year, down 10 points on last month.

Across the UK, overall confidence rose four points to 6% as firms’ confidence in their own prospects climbed two points to 15%.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide. This month’s survey was conducted before the Government announced its new deal on the UK’s departure from the EU.

Kelly Green, regional director for Yorkshire & the Humber at Lloyds Bank Commercial Banking, said: “It’s good to see businesses remaining optimistic overall in their outlook. Confidence has generally held steady in the region, despite a marginal dip on the previous month.

“However, it will be important for companies reporting lower confidence in trading prospects to manage their working capital carefully, especially in the coming months – when many firms will be expecting seasonal spikes in demand.”

Across the region, a net balance of 12% 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 three points on a month ago.

In other regions, businesses in the West Midlands showed the most confidence, at 16%, ahead of the South West at 15%, and East Midlands (13%).

Those in Scotland were the least confident, with an overall confidence of -3%, nine points below the national average.