Growing concerns about economic prospects have been highlighted by two local business surveys.

One shows that many companies are struggling to come to terms with a sustained period of low growth, while the other shows that many bosses think the economy is ‘flat-lining’.

Business confidence among Yorkshire companies has fallen back this quarter, according to the latest ICAEW/Grant Thornton UK Business Confidence Monitor, with growth expectations at their lowest since the end of 2010.

Senior business figures recorded a ‘Confidence Index’ score of just 1.5, only marginally above the negative readings seen at the end of 2011 and earlier this year, underlining the fragility of the UK economy. Regional firms have seen sales grow by 1.3 per cent compared with a year ago, which was less than half the national average growth of three per cent.

The report said gross profits and turnover growth over the past 12 months has been similarly weak. Regional employment has risen by only 0.2 per cent over the past year.

Jonathan Riley, senior partner for Grant Thornton in Yorkshire, said: “The findings for this quarter are not a surprise.

“Global growth has slowed, markets have responded downwards and the eurozone crisis will not go away. Inward investment and overseas expansion will be core to improving the UK economy and with our strong manufacturing base in Yorkshire, it is vital that businesses in the region seek opportunities to expand overseas.”

Chris Manners, regional director of the Institute of Chartered Accountants in England and Wales, said: “We are also seeing that local businesses’ expectations of growth have suffered a knock-back, reflecting the low confidence levels highlighted by these latest BCM findings. “Expected increases to sales volumes over the coming year have fallen steadily to reach this quarter’s low of 3.2 per cent, following a general downward path from a high of five per cent in quarter two.

“This is the slowest growth expectation for sales since the end of 2010.”

Bradford accountancy firm Watson Buckle revealed a mixed outlook among clients,with 50 per cent believing the economy was either flat-lining' or ‘negative’.

However, another 29 per cent felt there was a slight improvement in economic outlook, while 14 per cent felt conditions were strong.

More than 70 per cent of respondents want red tape to be slashed with 21 per cent highlighting late payment of invoices as a problem.

Watson Buckle tax partner John Kinsella said: “Our survey seems to indicate that a number of local businesses think things are getting better, not worse, however a disappointingly large proportion of our clients see a negative outlook and are planning accordingly with our business experts.”