Business confidence remains low in Yorkshire and the Humber post-Brexit

Confidence among businesses in the Yorkshire and the Humber region is on the verge of slipping into negative territory, according to the latest ICAEW Business Confidence Monitor (BCM).

Over the last twelve months, business confidence in the region has been hit by disruption in the steel industry, severe flooding and most recently the decision to leave the EU.

The latest ICAEW Business Confidence Monitor (BCM) report for Q3 in 2016 revealed that the Yorkshire and Humber Business Confidence Index stands at +1, compared to +19.5 12 months ago.

Foreign inputs from abroad only grew 0.4% year on year, while export growth was 2.2% in the latest quarter, reflecting slower international trade.

In addition, the report found that there has been a 0.6% price increase in the year to Q3, and growth in gross profits is increasing by 1.5% year on year in the current quarter.

Chris Manners, ICAEW regional director for the Yorkshire and Humberside, said: “Business confidence in Yorkshire and Humber has been subdued for some time and businesses in the region have reacted to the results of the EU referendum as you expect them to.

“Companies across the region are grateful that the new government was established quickly. Confidence in the region has fallen in the past year, and decisions around the future of regional devolution will now need to be made swiftly to help rebuild it.

“Businesses in Yorkshire and Humber remain resilient in their expectations and as a result of tighter profit margins, firms are being cautious about their spending in the year ahead.

“Time will help to rebuild confidence as the region begins to adapt and understand the environment, bearing in mind that the UK will still be in Europe for at least two years.”