Sales and orders are continuing to grow but underlying confidence has weakened since the start of the year, according to the Mid Yorkshire Chamber.
Its second quarter survey found declining investment and cash flow falling away but price pressures felt by businesses have also declined.
Chamber head of policy Steven Leigh said: “Having seen very mixed results, quarter by quarter, over the last several years, we consider it would be hasty to make any major assumptions regarding these results.
“Certainly we have not achieved the momentum we had all hoped for, and we are not yet witnessing economic growth at the sort of levels which will be necessary if we are to drive a sustainable recovery.
“But, there are some positives among these results and it would therefore be unproductive to prematurely read trends into single quarter figures.
“It is nevertheless positive that both profitability and turnover expectations remain above 2011 levels.
“It is to be hoped that the falls in confidence and investment are blips, representing the uncertainty felt by businesses, rather than any material change in conditions. Clearly, they are not borne out in actual economic performance - with export sales in particular showing growth this quarter.