BUSINESS confidence in Yorkshire is among the lowest in the UK, despite a significant increase in confidence in the first half of 2002, according to the latest Business in Britain survey from Lloyds TSB Corporate.

The survey's confidence index, which charts expectations for sales, orders and profitability for the coming six months, shows that Yorkshire's confidence as a business community remains lower than all other regions of the UK, apart from the West Midlands and the South West.

But it's not all doom and gloom. The tenth anniversary edition of the survey shows that Yorkshire's confidence has bounced back considerably this year, up 15 points to 25, from December's 10. This mirrors the national picture, which shows confidence in the UK has been boosted to 27 - up from zero in the last report.

Sandy Sanderson, Lloyds TSB Corporate area director for Yorkshire, says: "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 figure."

"Reassuringly, investment is holding steady."

The twice-yearly Yorkshire survey also showed:

Prices: Almost a third of firms - 29 per cent - were able to raise prices in the last six months, up from just 19 per cent six months ago. Nearly two thirds - 65 per cent - said prices would be sustained in the run up to Christmas.

Profits: The percentage of firms who reported a decrease in profits rather than a rise was 37 per cent. This was a slightly less positive picture than the national average of 33 per cent.

Employment: Slightly fewer companies have been able to increase employment in the first half of 2002 than the end of 2001. Just 24 per cent of those surveyed revealed more jobs, as opposed to 27 per cent six months ago.

Updated: 08:44 Tuesday, August 13, 2002