Published 6th Oct 2023, 06:00 GMT

The latest Quarterly Economic Survey showed both service sector firms and manufacturers reporting an increase in overseas sales, with both sectors expecting to increase their profits and take on more staff in the coming three months.

After months of stagnation, appetite for investment also appears to be creeping back – both into staff training and in capital projects. However, progress is still being impeded by cost pressures, with inflation and interest rates placing a significant drag on performance.

Tracy Brabin, mayor of West Yorkshire, said: “The results of the latest quarterly economic survey are grounds for cautious optimism.

A strong rise has been seen in both the performance and confidence of Yorkshire businesses, new data from the West and North Yorkshire Chamber of Commerce has found. Picture: Simon Hulme

“Having access to good, skilled people is crucial if businesses are to grow and succeed, as we build a brighter West Yorkshire that works for all. So, it is great to see that many businesses also plan to hire more new staff over the next three months, in what is already a tight and competitive labour market and are putting greater emphasis on training and skills.”

Among service sector firms there was a 15 per cent increase in businesses expecting to swell profits in the coming three months. Meanwhile the number of manufacturers expecting the same result grew by two per cent. A big growth area was that of overseas sales. Manufacturers who export posted a 15 per cent increase in activity while service sector firms saw sales abroad increase by 11 per cent.

Both sectors are also looking to increase their headcount in the run up to Christmas with service sector firms seven per cent more likely to take on staff and five per cent more manufacturers looking to do the same.

After months of decline, manufacturers looking to invest in plant and machinery rose by 22 per cent, while those seeking to invest in training rose by 15 per cent.

However, the research did show that pressures remained. The cost of labour and energy continue to pose headaches while interest rates and inflation remain the principal cost pressures facing business.

Martin Hathaway, managing director of Mid Yorkshire Chamber of Commerce, said: “It is extremely encouraging to see export sales, employment and investment all on the rise this quarter.

“Yorkshire businesses have shown true resilience and skill over the last few months, pioneering our region as the place to do business in the UK.”

Business confidence increases as firms report increased sales and plans to hire across West and North Yorkshire