BUSINESS confidence among Yorkshire firms is at its highest since January, 2008

But firms remain wary of investing in their business and recruiting new staff, said the latest Business in Britain report by Lloyds TSB Commercial.

The survey of 103 companies in the region showed they expect exports to Europe to fall – driven by the eurozone crisis – but believe sales to the rest of the world will remain resilient.

Economic growth in early 2012 is expected to be flat or slightly negative. Firms also remain worried about the outlook for demand in domestic markets.

John Robson, regional director for Lloyds TSB Commercial, said: “Export markets outside Europe will be the key to growth for businesses, in what will undeniably be a tough start to the year.

“It is understandable that businesses are keeping the brakes on investment, given the volatile economic climate, but it is crucial that firms in Yorkshire do whatever they can to maximise opportunities at home or overseas.”

He said: “Although export markets are certainly strained, there are still opportunities for growth in countries outside Europe for those Yorkshire businesses in a position to seize them.”