Business confidence in Yorkshire rose 15 points during October to 45%, according to the latest Business Barometer from Lloyds.

Companies in Yorkshire reported higher confidence in their own business prospects month-on-month, up five points at 46%. When taken alongside their optimism in the economy, up 26 points to 44%, this gives a headline confidence reading of 45% (vs. 30% in September).

A net balance of 34% of businesses in the region also expect to increase staff levels over the next year, up seven points on last month

Looking ahead to the next six months, Yorkshire businesses identified their top target areas for growth as investing in their teams, for example through training (57%), entering new markets (35%) and introducing new technology, such as automation or AI (33%).

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.

National picture

Overall, UK business confidence climbed eight points in October to 50%.

Firms’ optimism in their own trading prospects rose 11 points to 62%, while their confidence in the wider economy climbed six points to 39%.

The North East and West Midlands were the joint-most confident of any UK nation or region in October (both 62%), followed by London (60%).

Sector Insights

October saw the manufacturing sector’s confidence increase by 31 points to 62%, indicating stronger momentum in the sector. Retail firms also reported a rise in confidence, with the figure increasing by 13 points to 53%. Construction saw a confidence gain for the first time in five months, increasing 23 points to 58%. However, the service sector saw a decline for a third consecutive month, falling three points to 44%.

It’s particularly good to see this month’s rise in confidence accompanied by another rise in hiring intentions – a long-term signal of ambition that can have benefits that extend across the region’s economy.

As Yorkshire firms press ahead with their growth strategies, we’ll continue to be on hand with the tools, advice and support they need to make the most of new opportunities ahead.

Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said:
“Business confidence has risen following a fall in September, with trading prospects and economic optimism nearing the levels reported in the summer. Pricing pressures appear to have eased but continue to be driven primarily by general inflation and rising input and staffing costs.

“Over the course of this year, firms have demonstrated their resilience by adapting to challenges, despite higher labour costs, by focusing on hiring and workforce development.”