Business confidence in region 'taken a battering', says survey

The latest ICAEW/Grant Thornton monitor said confidence in Yorkshire has "taken a battering", with the region's scores lower than the rest of the UK, which also recorded a fall.

Chris Manners, regional director of the accountancy body, said: "Trends for the key performance indicators – such as turnover and profit – paint a relatively gloomy picture throughout Yorkshire and Humber. Domestic sales have also fallen, whereas elsewhere they have increased or at least held steady.

"This may reflect concerns about the impact of benefit cuts and above-target inflation on household spending power, as well as fears about potential growth in unemployment.

"The financial service sector accounts for many jobs in the region and cuts due to the recent banking crisis are still working through. Further the region relies heavily on public sector jobs, especially in South Yorkshire."

Jonathan Riley, managing partner of Grant Thornton's Leeds office, added: "We must take into account the period which the figures cover, a time when there was uncertainty regarding the public sector due to the Comprehensive Spending Review in October and heightened instability in the Eurozone."

He said the indicators show there will be growth in the Yorkshire and Humber economy over the next 12 months. On the plus side, commentators expect relatively strong growth by Yorkshire's exporters over the next year.