Business confidence falls amongst firms in Yorkshire and the Humber

Yorkshire and the Humber businesses identified their top target areas for growth in the next six months as evolving their offering with new products and services, introducing new technology and investing in their team, including hiring new people and investing in training.

A net balance of 21 per cent of businesses in the region also expect to increase staff levels over the next year, down 27 points on last month.

Martyn Kendrick, regional director for Yorkshire and the Humber at Lloyds Bank Commercial Banking, said: “While confidence has fallen this month, Yorkshire businesses are still more confident than they were this time last year – a clear indication that firms are forging ahead despite a complex and fast-moving environment.

“Encouragingly, they are also pursuing growth by exploring new products and services and the latest technology, as plans for an investment zone in South Yorkshire start to take hold and present opportunities for the region’s advanced manufacturing sector and its supply chain.”

Overall business confidence is a measure of responses from surveyed companies, which is calculated as an average based on their views on business prospects and optimism on the UK economy.

Looking at the UK as a whole, business confidence held steady at 42 per cent in April, the same level as recorded in March and February.

While firms’ confidence in their own prospects dipped marginally by four points to 45 per cent, their confidence in the economy rose by four points to 39%. Meanwhile, the net balance of companies planning to increase staff levels over the coming 12 months climbed six points to 33 per cent.

The East of England was the most confident UK nation or region in April, followed by the Wales and the North East.Businesses in the manufacturing sector reported increased confidence this month, recording an increased score of 45 per cent (up 4 points) which is the highest level for 3 months. Similarly, confidence among firms in the services sector and construction also improved, largely driven by greater economic optimism.

In retail, confidence pulled back slightly from last month’s strong showing to 40 per cent.

The Business Barometer surveys 1,200 businesses monthly.