Yorkshire business confidence fell in June, according to Business Barometer from Lloyds Bank Commercial Banking

However, Yorkshire businesses flagged a range of growth opportunities for the next six months, including investing in their team and diversifying into new markets.

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

A net balance of 40% of businesses in the region expect to increase staffing levels over the next year, up 10 points on last month.

However, overall business confidence in Yorkshire fell seven points to 27% in June, according to the barometer.

Stuart Mitchell, CEO of Live & Breathe Agency, said: “Confidence in both our own prospects and in the wider economy is certainly lower than it was six months ago. There are so many challenges out there that affect both us and our clients.

“However, we’re keeping our focus firmly on growth, and investing in our employees to ensure we continue to deliver the best possible service. We are getting ready to introduce new services, diversifying our offer for clients. And we are already delivering more training for our staff, helping them develop their skills – not just to strengthen our offering as an agency, but to ensure they can enjoy the best possible career.

“This service innovation and focus on our employees will be key to helping us navigate the challenges in the economy.”

Steve Harris, regional director for Yorkshire & the Humber at Lloyds Bank Commercial Banking, said: “The UK faces an unprecedented set of economic challenges as inflation, supply chain pressures and falling consumer confidence combine. Despite this, Yorkshire and the Humber businesses are showing remarkable levels of resilience and a clear determination to evolve and grow.

“Across the board, we see management teams focusing on long-term goals whilst working to shore up their working capital to allow them to jump on opportunities quickly. Now is the time for businesses to think carefully about their cashflow position to protect growth in times of economic turbulence.”

Hann-Ju Ho, Senior Economist Lloyds Bank Commercial Banking, said: “Business confidence declined this month, suggesting that the momentum for growth is moderating. Firms remain broadly positive but face several challenges ahead, including concerns around higher costs and slowing demand. If these trends continue, businesses may have less scope to pass on higher costs to support their margins.”