(Image: Pic supplied)
Business confidence is on the rise across West and North Yorkshire.
The latest Quarterly Economic Survey (QES) from the West & North Yorkshire Chamber of Commerce points to an improving outlook, driven by stronger domestic and international demand.
The Q3 report highlights a notable recovery in export performance, with both service and manufacturing firms recording higher overseas sales and improved export order books.
Victoria Wainwright, chair of the West & North Yorkshire Chamber of Commerce, said: "The latest Quarterly Economic Survey offers some welcome signs that business confidence and demand are moving in the right direction across West and North Yorkshire.
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"After an extended period in which many firms have faced persistent economic uncertainty, the results suggest businesses are beginning to see opportunities for growth emerge once again.
"Particularly encouraging is the strength of order books and the recovery in international demand.
"Businesses across many sectors are reporting growing optimism and a willingness to invest in future growth.
"However, the survey also reminds us that significant challenges remain, particularly around costs, taxation and profitability."
The survey shows that domestic demand is also strengthening.
Service sector businesses reported positive sales, while manufacturers saw a significant rebound in order books after several weak quarters.
This renewed momentum means many firms are entering the final months of the year with their strongest pipeline of work so far in 2026.
The service sector continues to lead regional growth, with companies reporting increased confidence, higher investment intentions, and improved recruitment plans.
Training investment is also at one of its highest levels in recent years, reflecting a focus on skills and productivity.
Manufacturers, while reporting better sales and orders, remain cautious about future investment and hiring.
Capital investment intentions among manufacturers turned negative during the quarter, signalling ongoing concern about profitability and broader economic stability.
Despite the more positive outlook, businesses continue to cite major concerns including taxation, competition, labour costs, energy prices, and inflation.
Many also report that cashflow remains under pressure, despite stronger sales.
Mark Casci, head of policy and representation at the chamber, said: "For much of the past two years businesses have been navigating weak demand, rising costs and considerable uncertainty.
"While those challenges have not disappeared, these results suggest firms are beginning to find firmer ground.
"We are seeing stronger domestic and export orders, rising confidence and clear signs that demand may be beginning to recover.
"However, cost pressures remain elevated and continue to impact decision-making.
"As we approach the Autumn Budget, businesses will be looking for measures that encourage investment, boost productivity and ease pressure on already stretched margins."
The Quarterly Economic Survey is one of the UK’s largest regular business surveys, informing policymakers at both local and national levels.
The chamber will host a webinar on the survey on Thursday, October 22, from 12pm to 1pm.