Firms across Yorkshire and Humber reported falling confidence across August, new research shows.
Overall sentiment was down 13 points to 32%, well below the national position of 54%. According to the Business Barometer from Lloyds, researchers found firms had lower confidence in their own prospects month-on-month, down four points to 50%.
Meanwhile optimism in the wider economy was down 22 points to 14%. Over the next six months, firms identified their top focuses for growth, including investing in their teams (39%), introducing new technology including artificial intelligence and automation (32%) and evolving their offering, including through the launch of new products and services (28%).
The findings - covering the first part of the month - show Yorkshire and Humber businesses' confidence was behind regional peers in the North East (55%) and the East of England (64%). Optimism was highest in London at 69%.
Sector-based analysis showed manufacturers and retailers both saw confidence upticks during the period, to 62% and 57% respectively. However construction firms suffered a five point fall to 40%, which represented a four-month low. Confidence in the service sector also fell, by eight points, to 53%.
Martyn Kendrick, regional director for Yorkshire and the Humber at Lloyds, said: "While confidence in the region has fallen this month, Yorkshire businesses continue to demonstrate their characteristic resilience and determination to grow. We'll continue to provide our on-the-ground support to help local businesses achieve their plans."
This week, a separate survey from the Confederation of British Industry (CBI), focused on the service sector, showed "pockets of resilience" but a "grim picture" overall. It pointed to rising employment costs and weak demand with headcounts, investments and profits all shrinking as firms concentrated on "short term fire-fighting".
Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said: “This continued upward trend in business confidence suggests º£½ÇÊÓƵ firms remain optimistic about their own trading prospects while there is a modest cooling of confidence in the wider º£½ÇÊÓƵ economy. Firms are focusing on what they can control, with many looking to pursue growth opportunities, including entering new markets and adopting new technologies.
"Wage expectations have seen a notable shift this month, but it remains to be seen whether this signals the start of a sustained trend or a temporary uplift, as they have been broadly stable in recent months."
