Investment is an important factor for the Yorkshire and Humber region. Capital expenditure reached a two-year high, as explored in the Q1 2026 Business Confidence Monitor (BCM), and the region continues to benefit from investment in sectors where it has established competitive strengths, including clean energy, advanced manufacturing, food production, health innovation and financial services.
Major employers and investors such as Siemens, Drax, ITM Power, Smith+Nephew, Cranswick and Nestlé are helping to drive activity across these sectors. The region is also benefiting from large-scale investment in net zero infrastructure, advanced manufacturing, HealthTech and digital innovation, supported by both private capital and government industrial strategy.
Highlights from the region
- Leeds continues to attract investment as one of the UK's leading financial centres outside London, strengthening the region's position in financial and professional services. More broadly, Yorkshire and the Humber has been identified as a priority innovation region, with strengths in advanced manufacturing, low-carbon industries, food and drink, health and care, and digital technologies. Government policy is increasingly focused on leveraging private capital into sectors where the region has clear competitive advantages.
- The region's large SME base may also be contributing to confidence levels. Despite challenging trading conditions, many smaller businesses continue to expect growth during 2026 and are generally not planning significant reductions in staffing.
- There are still risks, particularly around energy costs, labour costs and wider geopolitical uncertainty. However, the evidence currently available suggests that strong export performance, resilient employment levels, sustained business investment and growth opportunities across key sectors are helping Yorkshire and the Humber maintain business confidence above the national average.
A region showing resilience
Against a challenging national backdrop, Yorkshire & Humber stands out as a region showing resilience. While businesses continue to face economic and geopolitical uncertainty, the region's diverse economy, strong pipeline of investment and continued focus on regeneration are helping to support a more positive outlook. Events such as UKREIIF have showcased the scale of ambition across Yorkshire and the North, reinforcing confidence in the region's long-term growth prospects and its ability to attract investment and create opportunities.
- Leeds evening hospitality economy appears to be doing better than other areas, giving the impression people have money to spend.
- UKREIIF (UK Real Estate Investment & Infrastructure Forum) was held in Leeds in May. It is the UK’s largest property event aimed at professionals, investors, and developers. While the industry remains realistic about the challenges ahead, the overwhelming mood throughout the event was one of cautious optimism.
- Leeds is increasingly seen as the ‘Northern Square mile’ which echoed by our members in the finance and professional fields
BCM report
Read the full Yorkshire and the Humber Business Confidence Monitor report for the detailed survey findings and regional economic analysis
