Business confidence shows drop in region, says Lloyds survey

Business confidence in Yorkshire fell in June as many firms faced problems caused by rising inflation and supply chain disruption, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

By Tom Scargill
Friday, 1st July 2022, 11:54 am

However, Yorkshire businesses flagged a range of growth opportunities for the next six months, including investing in their team and diversifying into new markets.

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

A net balance of 40% of businesses in the region expect to increase staffing levels over the next year, up 10 points on last month.

Lloyds Banking Groups Trinity Road offices

However, overall business confidence in Yorkshire fell seven points to 27% in June, according to the barometer. Steve Harris, regional director for Yorkshire & the Humber at Lloyds Bank Commercial Banking, said: “The UK faces an unprecedented set of economic challenges as inflation, supply chain pressures and falling consumer confidence combine. Despite this, Yorkshire and the Humber businesses are showing remarkable levels of resilience and a clear determination to evolve and grow.

“Across the board, we see management teams focusing on long-term goals whilst working to shore up their working capital to allow them to jump on opportunities quickly.

“Now is the time for businesses to think carefully about their cashflow position to protect growth in times of economic turbulence.”

Hann-Ju Ho, senior economist Lloyds Bank Commercial Banking, said: “Business confidence declined this month, suggesting that the momentum for growth is moderating. Firms remain broadly positive but face several challenges ahead, including concerns around higher costs and slowing demand.

“If these trends continue, businesses may have less scope to pass on higher costs to support their margins.”

Lloyds Banking Group employs around 5,000 staff in Calderdale. The company has large corporate sites at Trinity Road, Halifax, and the Copley Data Centre near Sowerby Bridge.