Cautious rise in optimism for an economic upturn later this year

BRITISH COMPANIES are cautiously pinning their hopes on an economic recovery this year as lockdown is gradually eased, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

Although companies in Yorkshire reported marginally lower confidence in their own business prospects month-on-month, down two points at minus eight per cent, their economic optimism, up 19 points to 16 per cent, resulted in a headline confidence reading of four per cent in February.

The Business Barometer questions businesses monthly and provides signals about UK economic trends. When it comes to jobs, a net balance of one per cent of businesses in the region expect to increase staff levels over the next year, up 22 points on last month.

Steve Harris, the regional director for Yorkshire and Humber at Lloyds Bank Commercial Banking, said yesterday: “This month’s figures point to increased hope for a brighter future among Yorkshire and the Humber’s firms.

“Confidence has moved into net positive territory for the first time in ten months, and the significant uptick in hiring intentions is the clearest sign yet that the success of the UK’s vaccine rollout and hopes of easing restrictions is starting to affect business optimism.

“Following the Prime Minister’s announcement, businesses hopes are likely to have increased further. While firms will still face challenges, we’ll continue to support their growth and success as we navigate a return to normality in the coming months.”

Hann-Ju Ho, Senior Economist, Lloyds Bank Commercial Banking, said: “The uplift in business confidence and its entry into positive territory after nearly a year suggests that firms are cautiously pinning their hopes on economic revival in the future and the continued success of the vaccine rollout. In the coming weeks, announcements in the Budget and prospects of an easing of lockdown restrictions will hopefully help to bolster the recovery in business confidence as the economy starts to reopen.”

This survey polled 1,200 companies – including 89 in Yorkshire – between February 1 and 15.