Business confidence in Yorkshire fell one point during September to 45%, according to the latest Business Barometer from Lloyds.

Companies in Yorkshire reported lower confidence in their own trading outlook month-on-month, down one point at 51%. When taken alongside their optimism in the economy, down two points to 38%, this gives a headline confidence reading of 45% (vs. 46% in August 2026).

Yorkshire firms’ confidence in their own trading outlook was driven by strong customer demand (74%) and increased investment in technology (51%), while optimism in the economy was driven by strong market demand (55%) and a more stable political environment (44%).

A net balance of 46% of businesses in the region expect to increase staff levels over the next year, up six points on last month.

Business confidence in Yorkshire now sits slightly above the 12-month average of 44%, with its highest figure this year of 62% in March.

Looking ahead to the next six months, Yorkshire businesses identified their top target areas for growth as entering new markets (46%), investing in their team through training (45%), and introducing new technology such as AI or automation (38%).

The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.

Despite a very slight fall in confidence, it’s encouraging to see Yorkshire businesses continuing to back their own growth plans.

Strong customer demand and investment in technology are providing causes for optimism.

Almost half of firms also expect to grow their teams over the next year, and many plan to introduce technology such as AI and automation, showing that they remain focused on the opportunities ahead.

We’ll continue to support Yorkshire businesses as they invest, adapt and plan for the future.

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Overall, UK business confidence fell 12 points to 41% in September, the lowest level since April 2025.

This decline follows August’s reading of 53%, the second highest recorded this year, and buoyant results since May. While confidence remained well above the survey’s long term average of 30%, it was six points below the 12-month average of 47%.

The overall 12-point decline, which was comparable to the fall recorded earlier this year following the start of the Middle East conflict, was driven by a fall in economic optimism, as businesses responded to higher energy prices as a result of renewed tensions in the Middle East.

Businesses’ own trading outlook declined eight points to 50%, compared to a 12-month average of 56%. The majority of businesses (57% down nine points from August) expect an increase in output over the year ahead, while those expecting a decrease in activity reduced by one point to 7%. Among firms expecting weaker activity, the main drivers were economic uncertainty, higher cost pressures and weaker customer demand.

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “While confidence among larger firms remains strong, smaller businesses have seen a fall in sentiment as they continue to navigate higher costs, inflationary pressures and global uncertainty. Overall confidence remains above its long-term average, and most businesses still expect activity to grow over the coming year, underlining the resilience of UK firms. Ensuring smaller firms can share in future growth will be crucial in the months ahead."