Business confidence in Yorkshire has slipped in the last six months, partly due to renewed concerns on global growth, according to the latest Business in Britain report from Lloyds Bank.
Since the last report in July, the report’s confidence index has decreased by 10 points to 48 per cent, largely driven by decreases in expectations of profits and orders over the next six months.
This reflects a more cautious outlook for economic growth in 2015, it says.
The twice-yearly report, now in its 23rd year, gathers the views of more than 1,500 UK businesses and tracks the overall balance of opinion on a range of important performance and confidence measures.
It weighs up the percentage of firms that are positive in outlook against those that are negative.
Leigh Taylor, Lloyds area director for SME Banking in the North East, said: “Although business confidence has slipped back, it is important to remember that the UK recovery remains on track. Yorkshire companies should continue to think about their priorities and how they can best grow their businesses as we start the New Year.”
Expectations for total sales, orders and profits in the next six months - the three key indicators of business confidence - have all dropped but remain above their long-term average.
Over half of businesses in Yorkshire (60 per cent) said they expect orders to increase during the first half of the year, while one in 20 anticipate a decline. The resulting 55 per cent overall net balance represents a 6 point decrease from July 2014.
Some 57 per cent of businesses think their sales will increase in the next six months.