Yorkshire manufacturing confidence rebounds for the first time in several months, according to report

The fieldwork for the latest survey was carried out immediately following the imposition of increased National Insurance Contributions and the newly elevated minimum wage.

The region’s manufacturing sector put behind three successive quarters of negative confidence levels to begin finally to rebound, according to the QES, with UK sales posting an impressive 11-point increase.

Overseas orders also rose sharply, hinting that the export market for the region’s manufacturing sector is finally improving.

Mark Casci, the Chamber’s head of policy and representation and author of the report, said: “As an eternal optimist, I take comfort from the positives revealed in our latest data set.

"For one, our manufacturing sector has shaken off months of negativity and delivered a range of positives, most notably around domestic sales and orders, both of which rose handsomely during the second quarter of 2025.

"The sector’s confidence levels are clearly growing too, with profit expectations having increased for the first time in close to a year.”

The service sector, which had been performing well for the past two years, saw domestic and overseas sales both declined, while confidence regarding future profitability fell dramatically.

Businesses also looked to reduce headcounts, while the majority of investment plans, either in capital or upskilling all staff, have been paused.

In addition, 38 per cent of businesses surveyed said they thought tariffs on US companies using British goods and services would impact their operations negatively.

The fieldwork for the latest QES also took place before both Israel and America carried out attacks on Iran.

Mr Casci added: “The cost of employing people is at a very high level at present, and this is taking its toll on headcounts. Hiring intent among Yorkshire firms is declining, as are plans for capital investment.

“Taxation levels predictably continue to top the eternal pressure table, with labour costs still show as the chief concern around costs.

“Businesses in Yorkshire have for many years now shown themselves to be in possession of remarkable levels of resilience. Uncertain international and domestic trading conditions are quite simply the norm for entrepreneurs, and they will doubtless weather this latest storm and find a pathway to growth.”