Many of region’s firms hold a positive outlook

Almost half (47 per cent) of the 111 Yorkshire businesses questioned by Yorkshire Bank expect to increase turnover by more than five per cent in the year ahead.

In spite of their concerns about the economy, 48 per cent of Yorkshire businesses are planning to invest at least five per cent of their turnover back into their enterprise in the next year.

Investment priorities include staff, equipment, training and product and service development.

The most pressing concerns for Yorkshire businesses are fluctuating fuel prices and rising corporation tax.

Nearly a third (32 per cent) and a fifth (18.9 per cent) cite these respectively as key factors affecting their business.

Richard Norrington, Yorkshire Bank East Region integrated Financial Solutions (iFS) director, said: “Businesses are clearly more confident about their own prospects than they are for the wider economy in spite of the impact of rising fuel and materials prices.

“Our research highlights what Yorkshire businesses feel will help them and the economy, with increased consumer spending and confidence (22 per cent) and low interest rates (18 per cent) coming out as the key drivers to economic growth.

“It is inevitable that there will continue to be bumps in the road to economic recovery but Yorkshire businesses should continue to focus on their own strengths.”

Across the industries, IT and telecoms businesses appear the most confident with more than half (51 per cent) expecting increased turnover of at least five per cent in the next year.

Healthcare and education businesses are the least confident with only 32 per cent and 23 per cent respectively expecting similar growth.

This is mirrored in their investment intentions with 59 per cent of IT and telecoms businesses planning to invest at least five per cent of their turnover back into the business, compared with 27 per cent of education-focused businesses.

Mr Norrington added: “Yorkshire Bank is working with thousands of companies across the region which have the confidence to invest so they can target new markets, launch new products or take on more staff. Our commitment to supporting trading businesses is stronger than ever.”