Yorkshire Business Confidence Second-Highest in UK

Confidence among the region’s firms jumped 14 points in July to rank second of all 12 UK regions and nations, according to the Lloyds Business Barometer

Yorkshire business confidence is now the second-highest in the UK, new data suggests. The July Lloyds Business Barometer put confidence among firms in Yorkshire and the Humber at 61%, up 14 points on June and behind only the North East. That places the region well above the UK average of 49% and ahead of London on 51%. For Leeds, the business capital of the region, it is a welcome signal and one that matches the run of expansion, investment and hiring stories seen across the city in recent weeks.

Why This Matters For Leeds

Confidence is what turns into hiring, investment and deals a few months later, so a strong reading is encouraging for the wider Leeds economy. It also chimes with what has actually been happening on the ground: a rebounding office market, a £6.63bn regional visitor economy, and Leeds firms from Tracsis to Enablis expanding. Sentiment can move quickly, so no single month should be over-read, but when the mood and the deal flow point the same way, the optimism looks real.

What the Data Shows on Yorkshire Business Confidence

The barometer surveys firms on their trading prospects and their view of the wider economy, averaging the two into a headline confidence figure. Yorkshire and the Humber’s 61% was among the biggest movers, a 14-point monthly jump that lifted it four places up the rankings to second of the 12 UK regions and nations. Only the North East, on 75%, scored higher. Nationally, UK confidence rose five points to 49%, a four-month high, which Lloyds attributed to falling energy prices, the Bank of England holding interest rates and a calmer global backdrop at the time of the fieldwork. Not every region shared in it: sentiment fell in the South West, Scotland, Northern Ireland and London, underlining how uneven, and how changeable, the picture is.

“The stronger confidence we’re seeing among smaller businesses and firms focused on the domestic market is particularly encouraging.”

— Amanda Murphy, CEO for Lloyds Business and Commercial Banking

The Sectors and Firms Driving It

The detail beneath the headline is encouraging for Leeds. Nationally, confidence among construction firms rose 10 points to 56% and manufacturing climbed 14 points to 47%, both sectors central to the city’s economy and its development pipeline. Smaller businesses, those with turnover below £1m, reported an 11-point jump to 48%, a good sign for the SME base that makes up much of the Leeds business community. Domestically focused firms grew markedly more optimistic about the wider economy. The findings track the mood Leeds Today has reported through the summer, from the Q2 office rebound to a wave of funding and expansion deals. As a measure of sentiment rather than hard output, the barometer is one indicator among many, but on Yorkshire business confidence the direction of travel is clearly upward.