TWO new business surveys have underlined that economic recovery has taken root in the Yorkshire region.

Manufacturers are reporting positive trends across every key indicator of business health, while hiring intentions across regional businesses remain positive.

The latest quarterly manufacturing outlook survey by manufacturers’ organisation EEF and accountants BDO, reveals that manufacturers’ strong start to 2014 was sustained in the second quarter. Meanwhile, new findings by recruitment specialist Manpower show "encouraging" hiring intentions by Yorkshire firms.

The EEF/BDO report shows a balance of 54per cent of Yorkshire-based manufacturers reporting increased orders in the second quarter – the second highest in the UK, resulting in a balance of 39 per cent ramping up recruitment, with a further 28 per cent planning to invest further in the year ahead. However, the report flags up weaker demand in some key export markets, partly due to a strong pound, which lowered confidence among a small number of firms The strong regional results mirror the national picture and EEF is now forecasting 3.6 per cent manufacturing growth, against 2.7per cent at the beginning of the year.

Jason Whitworth, BDO partner in Yorkshire, said: “Government manufacturing policy is clearly paying dividends and is creating an environment in which Yorkshire manufacturers are comfortable enough to commit to future investment, both in terms of employment and capital. This is a very positive indicator for the rest of the year."

“What is now needed is for this success to be replicated abroad. We would encourage the Government to introduce more supportive measures for exports, especially given the tentative nature of economic recovery in Europe.”

Andy Tuscher, Yorkshire EEF regional director, added : “There is a palpable sense of mounting confidence amongst manufacturers here in Yorkshire and this set of results tells us that it is fully justified.

“The continuing trend for strong positives is a further boost for businesses emerging from the shadow of the recession. and a further boost to the local economy and the job market. Manufacturers in this region will also have an important role to play in helping to sustain broad based growth across the UK.”

The Manpower Employment Outlook shows a balance of eight per cent of Yorkshire firms with positive hiring intentions – two points higher than at the beginning of the year.

Amanda White, Manpower operations manager, said: “The market across Yorkshire and Humberside has visibly improved, most notably in terms of the increase in permanent roles that we are seeing, which give candidates a greater sense of security. “