Low confidence among firms

The latest Business in Britain survey from Lloyds TSB Corporate found companies in the area are lacking confidence compared to other parts of the country, despite a rise in confidence in the first half of 2002.

Apart from the West Midlands and the South West, Yorkshire's business community has the least confidence in the UK.

But the survey did reveal confidence has risen ten per cent in the area since December.

Sandy Sanderson, Lloyds TSB Corporate area director for Yorkshire, said: "The economy here is exceedingly resilient.

"Sales are showing signs of returning to robust levels, with 45 per cent of businesses enjoying rising turnover so far this year.

"Order books seem similarly healthy as 43 per cent of firms report an increase in trade, up ten per cent on December's figures.

"Reassuringly, investment is holding steady."

He added: "Around half of all firms, 49 per cent, revealed they had been able to maintain the amount ploughed into the business in the last six months.

"Virtually the same proportion of firms remain optimistic about the future as 48 per cent declare they expect to keep investment pegged where it is currently.

"This suggests that while companies have stepped back from the brink of market uncertainty following the difficult last quarter of 2001, prudent Yorkshire business prefers to see the proof of the pudding in terms of a continued upturn before it declares itself overly confident."

The number of firms in the area reporting a decrease in profits was 37 per cent, while nationally 33 per cent of firms reported a fall in profits.

Six months ago 27 per cent of firms in the area reported a rise in staff levels, this has dropped to 24 per cent in the latest survey. A year ago nearly a third, 32 per cent, reported a rise in employee numbers.

Nearly two thirds of firms, 65 per cent, say they will be able to sustain prices up to Christmas, but ten per cent say prices will have to drop due to market forces.