Business confidence in Yorkshire rose five points during June to 47%, according to the latest Business Barometer from Lloyds.

Companies in Yorkshire reported lower confidence in their own trading outlook month-on-month, down 11 points at 45%. When taken alongside their optimism in the economy, up 21 points to 49%, this gives a headline confidence reading of 47% (vs. 42% in May 2026).

Yorkshire firms’ confidence in the economy was driven by stronger customer demand (64%) and better economic news (47%), while confidence in their own trading outlook was also driven by stronger customer demand along with expected new contracts or clients (70%).

A net balance of 41% of businesses in the region also expect to increase staff levels over the next year, down five points on last month.

Business confidence in Yorkshire now sits above the 12-month average of 42%, with its highest figure of 62% in March 2026.

Looking ahead to the next six months, Yorkshire businesses identified their top target areas for growth as entering new markets (59%), evolving their offering, for example by introducing new products or services (51%) and as introducing new technology such as AI or automation (43%).

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.

Martyn Kendrick, Regional Director for Yorkshire and the Humber at Lloyds, said: "It’s encouraging to see business confidence in Yorkshire moving in the right direction this month, with firms feeling more positive about the wider economy.

“That confidence is being driven by businesses looking ahead with ambition – whether that’s exploring new markets, developing their products and services, or investing in new technology.

“With four in 10 firms also planning to grow their teams over the next year, there’s a real sense of momentum behind Yorkshire’s growth story. We’ll continue to support businesses across the region as they invest in the future.”

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Overall, UK business confidence fell three points in June to 44%.

Firms’ trading outlook fell two points to 56% and their optimism in the economy generally also fell four points to 31%.

The 12-month average for overall confidence is currently sitting at 47% and is trending above the long-term average of 30% since the survey began in 2002.

Despite a modest softening in business confidence due to wider global uncertainty, two thirds of firms nationally (64%) expect stronger output over the year ahead and hiring intentions for the coming twelve months strengthened for the first time since March.

The share of firms planning to increase their workforce rose to 55%, while 14% anticipated headcount reductions, leaving the net balance up five points at 41%. Firms intending to hire cited the need to meet strengthening demand and expand capacity, pointing to a degree of confidence in near-term activity.

Business confidence rose across six of the twelve UK regions and nations in June, with the South West seeing a 22pp jump to 44%, and the East Midlands becoming the most confident region.

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: "Confidence has edged down this month, and that reflects what we’re hearing directly from businesses. Many are still dealing with a mix of higher costs, uncertain demand and a wider global backdrop that feels difficult to read.

“That is weighing on decision making, particularly for firms that are focused on the UK market and have fewer ways to offset those pressures.

“However, this is not a picture of businesses stepping back altogether. Trading outlook remains relatively steady and we continue to see firms looking for new opportunities, even if investment plans have become more cautious.

“Businesses have shown over time that they can adapt in tough conditions, but for many the priority is managing costs and maintaining stability rather than pushing for growth?”