Nearly three-quarters of businesses in Yorkshire say their performance has improved or remained stable over the last three months.

The Spring 2010 Business Snapshot Survey, commissioned by regional development agency Yorkshire Forward, revealed that the region is showing signs of economic recovery and stability.

The study, undertaken by IFF Research, said increased sales and more customers were the most frequently-reported improvements to business performance, with a third of businesses with improved performance reporting that their sales had increased by 30 per cent, and a fifth reporting higher numbers of customers.

Expectations about future business performance were also quite positive, with 38 per cent of businesses thinking their performance will improve and only 13 per cent expecting it to worsen.

A third of all firms expect higher volumes of output and domestic orders in the coming three months, as businesses report further improvements in their trading environment.

However, 30 per cent of businesses have seen a negative trend in terms of their cash flow, and 35 per cent have seen a negative trend in terms of profit margins over the past three months, indicating a tough competitive environment.

The proportion of businesses seeking additional finance or credit has remained stable, with only eight per cent having sought new finance or new lines of credit.

Recent investment levels in key business areas have been solid, particularly in marketing & sales and staff training, which are top of the investment priority list. Encouragingly, a clear majority of businesses expect to maintain their future levels of investment.

The Business Snapshot Survey results are very timely with the survey being carried out last month and the results complement those of the Autumn 2009 National Business Survey.

Around 450 businesses in Yorkshire and Humber participated.