Yorkshire business confidence lowest in the UK

Business confidence in Yorkshire & the Humber fell 21 points during October to -29%, the lowest of any region in the UK, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

The barometer also saw companies in the region report lower confidence in their own business prospects month-on-month.

In fact just under a quarter (23%) of the businesses surveyed expect to reduce staff levels over the next 12 months.

Across the UK, overall confidence dropped seven points month-on-month to -18%. And although confidence about businesses’ own trading prospects dipped by only one point, their optimism in the economy fell by 14 points. Meaning that UK business confidence has remained in negative territory since April, but the picture had been improving until October, with confidence steadily rising since May.

Steve Harris, regional director for Yorkshire & the Humber at Lloyds Bank, said: “This month’s data was captured before South Yorkshire moved into tier three, but clearly confidence had already plummeted – likely due to the demand-dampening effects of rising COVID-19 cases and the threat of tighter local lockdown restrictions.

“A challenging winter lies ahead with the introduction of stricter measures across the rest of the region likely, affecting trade and firms’ ability to operate. We remain by the side of local businesses as they navigate the months to come.”