Business confidence drops in Yorkshire despite national uplift
Business confidence in Yorkshire fell 13 points during August to 32 per cent, despite a small uplift in confidence nationally, according to the latest Business Barometer from Lloyds.
Companies in Yorkshire reported lower confidence in their own business prospects month-on-month in August, down four points at 50 per cent.
When taken alongside their optimism in the economy, down 22 points to 14 per cent, this gives a headline confidence reading of 32 per cent, compared to 45 per cent in July.
Speaking on the figures, Martyn Kendrick, regional director for Yorkshire and the Humber at Lloyds, said: "While confidence in the region has fallen this month, Yorkshire businesses continue to demonstrate their characteristic resilience and determination to grow.
“We'll continue to provide our on-the-ground support to help local businesses achieve their plans."
Looking ahead to the next six months, Yorkshire businesses identified their top target areas for growth as investing in their team, for example by investing in training, and introducing new technology, such as AI or automation. Businesses also said they hoped to evolve their offering, including by introducing new products or services.
Nationally, UK business confidence rose two points in August to 54 per cent.
While firms’ confidence in the wider economy dropped three points to 44 per cent, their optimism in their own trading prospects rose five points to 63 per cent.
London was the most confident part of the UK in August, followed by the East of England.
Manufacturing firms saw confidence up 14 points this month, to 62 per cent. This level was previously seen in 2015.
Retailers also saw an increase in confidence this month, with levels up 13 points to 57 per cent, marking a five-month high.
However, construction firms confidence fell by five points to 40 per cent, a four-month low, while confidence in service sector firms also fell eight points to 53 per cent.
Speaking on the national results, Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said: “This continued upward trend in business confidence suggests UK firms remain optimistic about their own trading prospects while there is a modest cooling of confidence in the wider UK economy.
“Firms are focusing on what they can control, with many looking to pursue growth opportunities, including entering new markets and adopting new technologies.
“Wage expectations have seen a notable shift this month, but it remains to be seen whether this signals the start of a sustained trend or a temporary uplift, as they have been broadly stable in recent months.”