Why Yorkshire firms saw largest confidence increase in November

Confidence increased 18 points during the month of November to -11 per cent.

Companies in the region expect neither an increase or decrease in business activity over the next 12 months – making November the first month since March that firms haven’t expected trading prospects to worsen.

When taken alongside their views of the economy overall, this gives a headline confidence reading of -11 per cent.

Steve Harris, regional director for Yorkshire and the Humber at Lloyds Bank Commercial Banking, said: “The region’s firms reported the sharpest rise in overall confidence anywhere in the UK during November.

“This is encouraging to see alongside major improvements to trading prospects and hiring intentions, especially against a backdrop of national lockdown restrictions.

“Of course, there’s still a long journey back to the pre-pandemic trading environment, but promising vaccine developments have already begun to change the mood among businesses. December’s Barometer will provide an indication as to how the ongoing development of the Covid-19 exit strategy is affecting companies’ confidence.”

Mr Harris added that Lloyds was working closely with its clients to help them navigate the challenges of what may be a tough winter but hopes for a brighter spring ahead.

When it comes to hiring intentions, a net balance of 3 per cent expect to reduce staff levels over the next year, down 20 points on last month. The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

On a UK level, the report tracked a dramatic increase in business confidence after the November 9 announcement that the Pfizer and BioNTech vaccine has 90 per cent efficacy against Covid-19.

Firms surveyed after the announcement between November 9 and 16 had an overall confidence of -15 per cent, which was seven points higher than those polled before, between November 2 and 8.

For the month as a whole, UK business confidence registered at -21 per cent, down three points on October.

The North East had the highest confidence in November at -8 per cent, followed by Yorkshire at -11 per cent and Wales at -18 per cent.

Meanwhile, optimism fell 10 points in Scotland to -38 per cent making it the least confident of the UK’s nations and regions.

Hann-Ju Ho, senior economist at Lloyds Bank Commercial Banking, said: “The sustained number of coronavirus cases and more restrictive lockdown measures saw overall business confidence fall again this month.

“Firms across the sectors also continue to remain cautious as they prepare for a new trading relationship with the EU.

“However, confidence increased following the news of a potential vaccine to help combat the virus.

“The months ahead will be key for businesses as they navigate the winter months and adapt to the evolving landscape.”

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