Business confidence falls in Yorkshire amid Brexit optimism growth

Yorkshire has seen business confidence decrease in April, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

Companies in Yorkshire reported lower confidence in their business prospects at 30% and lower economic optimism at 27%.

Together, this gives an overall confidence of 29%, which is eight points below last month’s figure of 3%.

Across the region, a net balance of 5% of businesses said they felt that the UK’s exit from the European Union was having a positive impact on their expectations for business activity.

This figure is lower than the net balance of 12% who felt that it would have a negative impact in January.

Companies’ hiring intentions showed that a net balance of 21% of businesses in Yorkshire expect to hire more staff during the next year, down 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.

Kelly Green, regional director for Yorkshire at Lloyds Bank Commercial Banking, said: “While Yorkshire firms’ confidence has dropped since last month, it still remains robust in comparison with other regions, and is broadly in line with the sentiment felt at national level.

“This week also marks a new chapter in Yorkshire’s democratic history, with the election of the Sheffield City Region’s first ever mayor. Firms in the south of the region will particularly be keen to see whether the successful candidate can deliver economic development, regeneration and transport improvements across the region.”

Overall confidence was highest among North West businesses, at 49%, followed by London (43%) and the North East, (34%).

Businesses in the South West were least confident, with an overall confidence of 20%, 12 points below the national average at 32%.

Among different sectors, transport shows the strongest overall confidence (at 56 %), followed by communications (47%). The third-strongest industry sector was manufacturing (40%), even though it fell by nine points.

The industry sectors with weakest overall confidence were retail, which fell 12 points to 15%, and health, education and public sector (all at 20%).

Hann-Ju Ho, senior economist for Lloyds Bank Commercial Banking, said: “The fact that UK businesses’ economic optimism rose this month, against a backdrop of slightly eroding business prospects, is clearly good news.

“With more than half of firms nationwide more upbeat about the economy than they were at the start of the year, it will be interesting to see if that trend continues to grow as we approach the half way point in 2018.”