Business confidence plumments in Yorkshire during October

Companies in the region reported lower confidence in their own business prospects month-on-month at -28 per cent.

When taken alongside their views of the economy overall, this gave a headline confidence reading of -29 per cent.

Steve Harris, regional director for Yorkshire 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.”

When it comes to hiring intentions, a net balance of 23 per cent expect to reduce staff levels over the next year, down four points month-on-month, representing a marginal improvement.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

Across the UK, overall confidence dropped seven points month-on-month to -18 per cent. While confidence about businesses’ own trading prospects dipped by only one point, their optimism in the economy fell by 14 points.

UK business confidence has remained in negative territory since April, but the picture had been improving until October, with confidence steadily rising since May.

The North West had the highest confidence in October at -2 per cent, followed by the East of England at -8 per cent and North East at -10 per cent.

Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, said: “The resurgence in coronavirus cases and the reintroduction of local lockdown measures saw overall business confidence fall back sharply this month.

“Added to that are ongoing uncertainties regarding new trading arrangements with the EU in January. All of this makes the economic outlook uncertain and the period ahead will be pivotal for businesses as they navigate the winter months and continue to adapt to the evolving landscape.”

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James Mitchinson