Almost three quarters of the region’s firms questioned for the survey (73 per cent) said they are confident they would have greater success in the coming 12 months, compared to 2022.

The research was carried out between December 1 and December 14 as part of additional polling for the monthly Lloyds Bank Business Barometer.

The sample size covers 1,200 UK companies – including 100 businesses in Yorkshire and the Humber – from all industry sectors, regions and firm sizes with annual turnover above £250,000.

Businesses in Yorkshire have an optimistic view about their prospects in 2023, new research has found.

Of the regional firms questioned, nearly a fifth (17 per cent) were not confident about being more successful in 2023 and one in 13 (7 per cent) expected their business to perform at the same level in the next year.

Firms in Yorkshire projected a more upbeat outlook for 2023 with more than half (58 per cent) expecting a higher turnover than in 2022.

A quarter (25 per cent) of businesses expect turnover to increase by between 5 per cent and 19 per cent, and more than one in eight (13 per cent) anticipate turnover to increase by more than 20 per cent.

When businesses were asked what they would do to fuel growth, 98 per cent said they were planning an investment drive.

Firms reported that funding would be used to develop their company (42 per cent), introduce energy efficiency measures (40 per cent), and train staff (36 per cent).

Alongside investment, Yorkshire businesses plan on making several New Year’s resolutions. These include to improve productivity, win new business in existing markets, and upskill existing staff.

Steve Harris, regional director for Yorkshire and the Humber at Lloyds Bank, said: “2022 was an interesting year to say the least, so to see so many firms across Yorkshire preparing for a more positive 2023 is extremely encouraging.

"Despite the challenges the region has faced, firms are thinking long-term and putting the steps in place now for a successful future. For example, businesses are looking to invest more in their teams and explore new markets to support their growth in the new year.

“If the resilience I’ve seen on the ground continues, I’m confident firms across the region will have a very bright future. We’ll be by the side of businesses to provide the right support and guidance as they seize and benefit from the new opportunities that lay ahead.”

The regional optimism comes despite concerns about the likely performance of the national economy this year.

Samuel Tombs at Pantheon Macroeconomics is forecasting 2023 to be the “year of the recession”.

He said GDP is likely to fall by 1.5 per cent year-on-year in 2023, with no sign of a recovery until early 2024.

With interest rates ending 2022 at 3.5 per cent – a 14-year high – this will further hold back consumer spending, hitting some four million mortgage borrowers who are due to refinance next year, according to the Bank of England.

But the expected recession will also help rein in inflation, which will allow the Bank to take its foot off the pedal.

Mr Tombs said: “We expect the MPC to raise Bank Rate to 4 per cent in February, but then to stand pat in March.

“Eventually, the MPC will cut Bank Rate again… but we think the Monetary Policy Committee will wait until early 2024 to begin to reduce Bank Rate, and only then by 50 basis points to 3.5 per cent by the end of the year.”

Martin Beck at the EY Item Club is slightly more optimistic, as he believes households still have some savings built up during Covid that they can dip into.

“Consumer spending is therefore unlikely to fall to the same extent as real incomes. And falling inflation over the course of next year offers hope of a return to growth later in 2023,” he said.

Yorkshire businesses bullish about growing success in 2023, Lloyds Bank survey reveals