DIFFICULTIES within domestic and international economies are adding to disruption for local and regional businesses.

The latest survey results of West & North Yorkshire Chamber of Commerce point to a slowing down of economic growth and a resulting loss of confidence looking forward. 

As a result, many firms are beginning to look at their spending plans for the rest of the year and beyond. 

The Chamber says that more measures from the Government are now needed to head off or minimise the looming damage.

The organisation says that the last four quarters of survey results have shown surprising resilience - with demand remaining buoyant - but supply chain problems are holding back growth. 

That has now stuttered, with inflation and a tight labour market combining with supply chain disruption to increase uncertainty for many. 

The Chamber says manufacturers are now showing a slowing down of growth, in both domestic and export markets.

These are compounded by falling confidence and investment plans, as many look to retain cash within their businesses due to the increasing uncertainties. 

Price rises are expected to continue throughout the rest of this year, and so cashflow difficulties and falling profits are also feared.

Vicky Wainwright, President of the Bradford Chamber of Commerce, said: “Strong head winds are forcing many companies to pause investment decisions as they prepare for an uncertain second half to 2022.

“Volatility in supply is making pricing difficult for many as inflationary pressures continue to rise. Now is the time for government intervention to ease the burden on energy costs through reductions in VAT.”

Mark Roberts, The Chair of Leeds City Region Enterprise Partnership, added, “Inflation is the greatest challenge currently facing the majority of businesses. With CPI rising to 9.1 per cent in the past month, and forecasts suggesting a peak above 10 per cent in late 2022, it is likely that this issue will persist in at least the short to medium term.

“This is something that businesses within the region are all too aware of, with business concerns around inflation reaching a 30-year high.”