Yorkshire business confidence holding steady, finds Lloyds Business Barometer
Business confidence in Yorkshire held steady during May at 42 per cent, according to the latest Business Barometer from Lloyds.
Companies in Yorkshire reported lower confidence in their own trading outlook month-on-month, down three points at 56 per cent. When taken alongside their optimism in the economy, up two points to 28 per cent, this gives a headline confidence reading of 42 per cent – the same level as in April 2026.
Despite this, Yorkshire firms said stronger customer demand and expected new contracts were driving confidence in their own trading outlook. Almost half of businesses in the region also expect to increase staffing levels over the next year, up two points on last month.
Since May 2025, Yorkshire has had an average overall business confidence of 42 per cent with its largest figure of 62 per cent in March 2026 and its lowest of 29 per cent in January.
Looking ahead to the next six months, Yorkshire businesses identified their top target areas for growth as investing in team training, entering new markets, and evolving their offering, for example by introducing new products or services.
Martyn Kendrick, regional director for Yorkshire and the Humber at Lloyds, said: “Following last month’s dip, it’s encouraging to see confidence tentatively stabilising. Firms’ wider economic optimism is also showing signs of improvement, as Yorkshire businesses remain focused on growth.
“More than half are continuing to invest in training and developing their people, while many are also looking to expand into new markets. This reflects the resilience and ambition that Yorkshire’s business community is known for.
“We’re here to help support that momentum whether through financing, practical guidance or supporting firms as they navigate the current environment.” Overall, UK business confidence rose three points in May to 47 per cent.
Firms’ trading outlook rose four points to 58 per cent while their optimism in the economy generally rose two points to 35 per cent.
Sixty-six percent expect stronger output over the year ahead, while 8 per cent predict weaker activity.
The main drivers behind businesses expecting a decrease in activity remain the same as in April; economic uncertainty, higher cost pressures and weaker customer demand.
Business confidence rose across seven of the twelve UK regions and nations in May, and decreased in four. Northern Ireland saw notable gains with North East and West Midlands becoming the most confident regions.
Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “Business confidence edged up modestly in May, suggesting firms are beginning to steady after April’s decline.
“This month, confidence levels from businesses in the North East particularly stands out.
“It's also reassuring to see that increased confidence from the construction sector has brought them more in line with their retail, services and manufacturing counterparts.