Yorkshire businesses 'bucking national trend' with growing confidence levels
Most private business owners in Yorkshire are confident about their growth prospects for the rest of the year with an increasing focus on investing in technology as a priority, according to KPMG.
New research for KPMG UK’s mid-year Private Enterprise Barometer has found 84 per cent of private business owners in Yorkshire are confident in delivering growth in the second half of 2026 – slightly up from 81 per cent at the start of the year.
This compares with a drop in the national figure from 87 per cent down to 80 per cent.
Technology remains a leading investment priority for Yorkshire-based businesses, with 71 per cent identifying areas such as artificial intelligence (AI), cyber security and broader digital transformation as key focuses.
This is five percentage points above the UK average (66 per cent) and represents a 32-percentage point increase from 39 per cent at the beginning of the year, signalling a dramatic shift towards investment in long-term productivity and innovation across the region.
Phil Murden, Leeds Office Senior Partner at KPMG UK, said: “Yorkshire's private businesses are bucking the national trend. At a time when confidence has softened across the UK, firms in our region are becoming more optimistic and, crucially, continuing to invest.
"The standout finding is the strength of Yorkshire's commitment to technology.
"Businesses here are investing in AI, cyber security and digital transformation at a higher rate than the UK average, reflecting the region's growing reputation as a powerhouse for digital innovation, financial and professional services, and advanced manufacturing. Those investments will be key to unlocking the productivity and competitiveness businesses need for long-term growth.
"Businesses aren't ignoring the challenges. Inflation, cost pressures and economic uncertainty remain very real. But rather than standing still, Yorkshire firms are backing themselves to grow. Now they need the right conditions from the new government to keep investing, build digital capability and turn that confidence into sustained growth."
Euan West, Head of KPMG Private Enterprise in the UK and EMA, said of the national figures: “2026 has continued to present private businesses with a challenging operating environment, shaped by uncertainty both at home and abroad.
“Against that backdrop, it is encouraging that eight in 10 business leaders remain confident about their growth prospects. While confidence has eased since the end of last year, the overall picture remains one of resilience and determination.
“What stands out most is how private businesses are responding. Rather than pulling back, they are investing in skills, technology and the capabilities that will help them remain competitive and unlock future growth.
“These results highlight a business community that is realistic about the challenges ahead but confident in its ability to overcome them.”