NEW surveys have highlighted falling regional business confidence in the wake of the Brexit vote.

The latest business confidence monitor from the Institute of Chartered Accountants in England and Wales reveals a negative trend due to the referendum vote to leave the EU along with the impact of floods and disruption in the steel industry.

The ICAEW’s regional business confidence index now stands at +1 against +19.5 a year ago.

Chris Manners, ICAEW Yorkshire regional director, said: “Confidence in the region has fallen in the past year and decisions around the future of regional devolution will now need to be made swiftly to help rebuild it.

“Businesses in Yorkshire remain resilient in their expectations and as a result of tighter profit margins, firms are being cautious about their spending in the year ahead. Time will help to rebuild confidence as the region begins to adapt and understand the environment, bearing in mind that the UK will still be in Europe for at least two years.”

Falling business confidence is underlined by the latest survey of employment agencies showing that only a minority of firms planning to hire more workers over the short-term, with smaller businesses most likely to recruit people.

The Recruitment and Employment Confederation said its study suggested that most firms were holding back from making job cuts after Brexit dented confidence .

The follows a recent warning from the Bank of England that many firms are deferring recruitment and expansion following the Brexit vote.

The latest Lloyds Bank Regional PMI report says new business orders fell in July at the fastest rate since the financial crisis in 2009.

Greater business uncertainty also led to a a further downturn in employment, with the rate of regional job losses accelerating since June.

The weakness of the pound also affected the price of raw materials, contributing to the sharpest rise in company costs in five years.