• Recruitment is down 20 per cent for West Yorkshire manufacturers
• But UK sales are in third consecutive quarter of growth for West Yorkshire service firms

Firms across our region have seen international sales activity decline significantly in the first quarter of 2025 for both manufacturers (down nine per cent) and service firms (down ten per cent). This marks the first time both sectors have found themselves in negative territory since the end of 2023, as revealed by new data from the Mid Yorkshire Chamber of Commerce (MY Chamber).

The results of MY Chamber’s latest Quarterly Economic Survey (QES) show that despite this decline in international sales, service sector firms have fared more positively with their domestic results, showing a third consecutive quarter of sales growth. However, manufacturers in the region saw domestic sales drop by seven per cent.

MY Chamber’s data also reveals that recruitment is down 20 per cent for manufacturing businesses, with many citing tax and labour cost pressures as major concerns.

The QES contributes to the national British Chambers of Commerce quarterly research, the UK’s largest and longest-running independent business survey which is used by policy makers such as the Bank of England and the Treasury. The research also helps MY Chamber and other local and regional bodies campaign for the right business support, at the right time.

Martin Hathaway, managing director of MY Chamber of Commerce, said: “Following the National Insurance hikes and minimum wage changes announced in the Autumn budget it is no surprise that firms are struggling.

“This has been a tough first quarter for many businesses in our region and across the nation, with many putting investment, recruitment and general growth plans on hold while they settle into these increased costs.

“That being said, I was pleased to see a focus on long term investment plans to support manufacturers in the Spring Statement including £4.5bn over five years becoming available for strategic manufacturing sectors and further support through local investment zones.

“This support from central Government is vital to allow confidence to grow and the economy to get going again. We have some amazing businesses and talented people here in West Yorkshire, but increased taxes, cost pressures and changing regulations every few months are stunting growth and making it harder for progress to be made.”