Yorkshire business confidence falls, but a third of firms still plan to hire, says survey

The barometer found that business confidence in Yorkshire fell 10 points in October to 35 per cent. The overall ‘balance’ of business confidence opinion weighs up the percentage of firms that are positive in outlook against those that are negative and gives a net balance on a scale of -100% to 100%, where a score of 0 would mean there was an even balance of positive and negative sentiment. Companies in Yorkshire reported lower confidence in their own trading outlook month-on-month, which was down 19 points at 32 per cent. When taken alongside their optimism in the economy which was up one point to 39 per cent, this gives a headline confidence reading of 35 per cent, compare with 45 per cent in September.

Despite this, Yorkshire firms reported better economic data or news (39 per cent), industry-specific improvements (38 per cent) and stronger customer or market demand (34 per cent) as reasons for optimism in the economy. A net balance of 32 per cent of businesses in the region expect to increase staffing levels over the next year, down 14 points on last month.

Martyn Kendrick, inset, Regional Director for Yorkshire and the Humber at Lloyds, said: “While confidence has fallen this month, Yorkshire businesses continue to see opportunities for growth, supported by strong customer demand and investment in capacity.

"Nearly a third of firms plan to increase staff numbers over the next year, and many are looking to enter new markets, invest in their teams and develop new products and services.

“These plans demonstrate the ambition and resilience of businesses across the region, and we’ll continue to support them as they invest, adapt and grow.”

Overall, UK business confidence rose six points to 47 per cent in October, sitting above the long-term average of 30 per cent.

The increase follows September’s reading of 41 per cent. October has also seen an improvement in firms’ own trading outlook and economic optimism, despite continued uncertainty from the Middle East conflict, the survey said.

Optimism in the wider economy rose nine points to 40 per cent, compared to a 12-month average of 37 per cent. The factors that led to the increase included stronger customer demand, better economic news, and improving financial conditions.

Fiamma Morton, Managing Director, SME Banking at Lloyds, said: “I hear from business owners every day about their determination to keep moving forward. There are still challenges, but increasingly the conversation is about what comes next: where new customers will come from, how technology can make the business better, and where investing today might create an opportunity tomorrow.

"There are careful choices to make. Cost pressures haven’t gone away, so investment needs to work hard. But the ambition is absolutely there. Businesses are continuing to find ways to grow, adapt and make their next move.”