Latest QES report shows business confidence has improved heading into 2026

Business confidence in West and North Yorkshire has improved for the first time in several months, new data from West & North Yorkshire Chamber of Commerce shows. 

The Chamber’s latest Quarterly Economic Survey for Q4 of 2025 shows improving sales, both domestically and overseas, as well as rising levels of investment and expectations on profitability.

However, concerns on overheads, most notably taxation, remain sky high and there appears to be a continuing reluctance to grow headcounts, as wage costs continue to hamper business growth.

Mark Casci, head of representation and policy at the Chamber, said: “We are a realistic bunch here in Yorkshire and none of us believe that one swallow makes a summer.  

“However, we can settle into 2026 with hope that the torrid and turbulent year of trading in 2025 has ended on something of a high. 

“That is not to say the landscape is improving. Tax and labour costs are still sky high, with inflation and utility costs increasingly weighing on employers’ minds.  

“With the Autumn Budget having delivered little to give business owners faith, it is indeed testimony to the tenacity and talent of our region’s business community that such strong figures are being delivered.”  

The region’s service sector posted a remarkable improvement in its sale activity, up a staggering 22 per cent. No such improvement however for manufacturers who saw a two per cent decline in UK sales, rowing back on the slight improvement it witnessed in Q3. Order books for both sectors showed strong improvements a well, hinting at a strong start for our region’s economy for 2026. 

After a gloomy 2025, it is most pleasing to see both sectors posting considerable increases in expectations around profitability.  

Manufacturers reversed a year almost devoid of optimism, posting a 30 point improvement in confidence levels, while service sector firms improved by 16 points.  

The proof will be in the pudding in the first QES of 2026 as to whether or not these numbers are a one off, or the start of a period of improved trading.