Yorkshire business confidence ‘the lowest in the country’

Confidence among Yorkshire businesses is the lowest of any regions, new data today shows.
Sheffield : Pic by Gerard BinksSheffield : Pic by Gerard Binks
Sheffield : Pic by Gerard Binks

The latest Business Barometer from Lloyds Bank Commercial Banking showed confidence in the region plummeted by 18 points this month,

Companies in the region report lower confidence in their business prospects, which fell 14 points to 12 per cent. When combined with their views on the economy overall, this gives an overall confidence of five per cent, eight points below the national average and the lowest of any UK region.

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Across the UK, overall confidence grew three points to 13 per cent as firms’ confidence in their own prospects grew five points to 22 per cent, while their economic optimism also grew by three points to five per cent.

Kelly Green, regional director for Yorkshire and the Humber at Lloyds Bank Commercial Banking, said: “Recent political and economic uncertainty have weighed heavily on businesses in Yorkshire, leading some firms to review their investment plans. “That being said, Yorkshire has an incredibly robust local economy and firms have shown their resilience over the past 12 months.

“Whatever the coming months may hold, we’ll be by the side of businesses in Yorkshire and have pledged to lend £1.4 billion to help them achieve their ambitions in the coming year.”

Across the region, a net balance of 23 per cent of businesses say they feel the UK’s exit from the European Union is having a negative impact on their expectations for business activity.

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This is compared with a net balance of three per cent of businesses who felt it was having a positive impact during May.

NATIONAL OVERVIEW

Businesses in the West Midlands show most confidence at 25 per cent, ahead of those in London (18 per cent).

Outside Yorkshire, businesses in the East Midlands and South West show the least confidence, both at eight per cent.

Business confidence increased in the retail sector, up by 11 points to 22 per cent. Gains were also seen in construction, up five points to 17 per cent, and in the services sector, up five points to 12 per cent. In contrast, confidence in the manufacturing sector fell by 11 points, bringing June’s figures back in line with the low seen earlier this year.

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Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “While overall business confidence is still below the long-term average, it is encouraging to see a rise for the third time in four months since the low in February.

“Firms are showing more optimism both in their trading prospects and the overall economy, with levels rising in the retail, construction and services sectors this month. Ongoing global trade tensions, however, appear to have weighed on manufacturing confidence.”

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