Yorkshire businesses set for recruitment drive as confidence is on the rise

The number of Yorkshire businesses set to hire more employees has increased during March due to a rise in overall confidence, according to the latest Business Barometer from Lloyds Bank Commercial Banking found.

The Business Barometer shows that companies in the region have reported higher confidence in their business prospects at 41% and higher economic optimism at 33%.

Together, this gives an overall confidence of 37%, compared with last month’s figure of 27%.

Companies’ hiring intentions showed that a net balance of 29% of businesses in Yorkshire expect to hire more staff during the next year, up eight points on last month.

The Business Barometer questions 1,200 businesses monthly and provides early signals about UK economic trends both regionally and nationwide.

Stephen Harris, regional director for Yorkshire at Lloyds Bank Commercial Banking, said: “It’s excellent to see such optimism among Yorkshire firms, especially in a month where productivity was tested by the region’s battering from the Beast from the East.

“There’s currently plenty for firms to be confident about. The ambitious plans laid out by Doncaster Sheffield Airport in March for its £280m ‘aerotroplis’, for example, would serve businesses with an abundance of opportunities to grow domestically and internationally, while offering a massive boost to the local economy too.”

Across Yorkshire, a net balance of 3% of businesses said they felt that the UK’s exit from the European Union was having a negative impact on their expectations for business activity, up marginally from two points one month ago.

Overall confidence in March was strongest in the transport and manufacturing sectors, at 55% and 49% respectively.

In contrast, confidence was weakest in wholesale (11%) and hospitality and leisure (18%).

Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, commented: “While firms’ confidence in their business prospects improved slightly in March, overall business confidence was held back by a fall in economic optimism.

“Recent progress on the Brexit negotiations has reduced uncertainty, which could continue to support business confidence going forward. The risk of rising global protectionism, however, is a growing concern.”