WNY Chamber reports improving outlook for region’s employers

Businesses across West and North Yorkshire are reporting their most positive outlook for some time, according to new research published by the West & North Yorkshire Chamber of Commerce. 

The Chamber’s Quarterly Economic Survey (QES) for Q3 2026 indicates that stronger domestic and international demand is helping to boost confidence among firms across the region, with substantial improvements in sales, order books and future growth expectations.  

Encouragingly, a significant recovery in overseas trade is being reported, following a challenging period for exporters. Both service sector and manufacturing firms reported stronger export sales and a dramatic improvement in export order books, suggesting growing opportunities in international markets. Export orders improved sharply across both sectors, pointing towards a healthier trading environment heading into the final quarter of the year.  

The survey also found that domestic demand is strengthening. While service sector sales remained positive, the standout result was a surge in domestic orders, while manufacturers reported a dramatic turnaround in order books after several quarters of weakness. The findings suggest businesses are entering the final months of 2026 with a stronger pipeline of future work than at any stage earlier in the year.  

The region’s service sector continues to lead growth, with firms reporting rising confidence, increased investment intentions and stronger recruitment plans. Training investment also reached some of its highest levels in recent years, reflecting a continued focus on skills and productivity. 

Manufacturers also saw encouraging improvements in sales and orders, although many remain cautious about future investment and recruitment decisions despite improved trading conditions. Capital investment intentions among manufacturers fell back into negative territory during the quarter, highlighting ongoing concerns around profitability and economic uncertainty.  

Despite the more positive outlook, firms continue to identify taxation, competition, labour costs, energy prices and inflation as major concerns. Many businesses also report that cashflow remains under pressure despite stronger sales performance.  

Victoria Wainwright, Chair of 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. 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.”  

Mark Casci, Head of Policy and Representation at West & North Yorkshire Chamber of Commerce, added:

“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 and is used by policymakers locally and nationally to understand economic conditions and inform decision-making. 

Learn more about the QES here: https://wnychamber.co.uk/representation/qes/