Business confidence in Yorkshire falls in November

Business confidence in Yorkshire & the Humber fell seven points during November to -2%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

Companies in the region reported lower confidence in their business prospects at 3%. When taken alongside their views of the economy overall, this gives an overall confidence of -2%.

Businesses’ hiring intentions show that a net balance of 5% of businesses in the region expect to decrease staffing levels during the next year, down one point on last month.

Across the UK, overall confidence rose three points to 9% as firms’ optimism about the economy rose 10 points to 7%, although their confidence in their own prospects dropped three points to 12%.

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 & the Humber at Lloyds Bank Commercial Banking, said: “Uncertainty continues to weigh on the shoulders of Yorkshire’s firms planning for the year ahead. However, there are reasons to be cheerful in the county this month.

“Doncaster Council approving the construction of a new advanced manufacturing scheme is set to create 4,300 jobs, while McLaren announced plans to triple its Sheffield workforce.

“Each are huge wins for South Yorkshire, creating high-skills jobs and knock-on opportunities across the wider region’s supply chain.”

Across the region, a net balance of 8% 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 four points on a month ago.

Nationally, overall business confidence improved in manufacturing, retail and services and stayed broadly steady in construction.

The largest increase was in the retail sector, rising six points to 21%, while the construction sector remained high at 16% despite a slight decline of two points.

Sentiment in the manufacturing sector rose to a four-month high of 10%, while services confidence also increased for a second month, by four points to 4%.

Hann-Ju Ho, senior economist, Lloyds Bank Commercial Banking, said: “The third consecutive increase in overall business confidence is positive for the UK as economic optimism reaches the highest level since January.

“While concerns about the impact of the UK leaving the EU continued to ease slightly, hiring intentions remain broadly stable and it will be interesting to see how this trend continues towards the end of 2019 and into the start of next year.”