FIRMS in Yorkshire and the Humber are less positive in outlook for the main indicators of business health than any other part of the UK.

The latest Institute of Chartered Accountants’ UK Business Confidence Monitor (BCM) shows that while the region’s overall confidence has only fallen by 2.2 points this quarter, bringing it into line with the UK average score of 25.5, the region has also seen the steepest falls in forecasts for growth in turnover and gross profits.

There has also been a far greater rise in unemployment than any other English region over the past 12 months which could be contributing to the pessimistic forecasts. Chris Manners, regional director for the Institute of Chartered Accountants for England and Wales (ICAEW) said: “Official unemployment statistics reflect firms’ assertions that the number of employees in the Yorkshire and Humber declined by four per cent over the year to date.

“This is the steepest decline of any region and compares to a UK average fall of just two per cent – and the prognosis for the coming 12 months shows only an increase of headcount of around 0.7 per cent.”

Gross profits in Yorkshire and the Humber are projected to grow by 3.4 per cent over the next 12 months, up from a decline of 2.2 per cent over the year to date. Sales volumes are forecast to expand by four per cent over the coming year after a contraction of 3.2 per cent over the past 12 months.