CONFIDENCE among local service sector firms has fallen to its lowest point in three years, a new business survey shows.

Companies are gloomy about expectations of increasing turnover and profitability, according to the latest quarterly economic survey from West & North Yorkshire Chamber of Commerce, which includes Bradford.

In contrast, the number of manufacturers anticipating higher profits over the next 12 months rose for the second consecutive quarter.

Service sector firms saw both domestic and overseas sales fall. Manufacturers also saw export levels fall but saw a slight increase in UK sales, according to the chamber.

The service sector reported a steep decline in capital and training investment plans, while the number of manufacturers planning to invest was slightly higher than the previous quarter.

It is the first time in four years that manufacturing has outperformed services in the chamber survey.

The fieldwork for survey was undertaken in late May and early June, so does not include reactions to the EU referendum outcome.

The chamber says it will publish separate findings on Brexit in the near future.

Manufacturers reported no change to turnover expectations and 40 per cent of businesses in both sectors continue to operate at full capacity as they have for the past four years.

Stephen Wright, West & North Yorkshire Chamber chairman and managing director of Bradford-based pneumatics firm Thorite, said: “While the findings are disappointing, it’s probably not surprising as there has been increasing uncertainty in the air for most of 2016.

“Last month’s referendum result will give more cause for concern to many firms while others will remain stoical and calm-headed about the situation – in other words, business as usual.

“Our business is now to keep supporting chamber members with services and opportunities and to represent them in dealings with decision-makers like politicians and civil servants.”