In the latest edition of its annual Yorkshire Report, BDO Stoy Hayward reveals that last year Yorkshire's top 150 companies put a two-year investment drought behind them and switched to "buy" mode, spending £1.1billion on acquisitions.

However, in the current climate of economic uncertainty, Yorkshire business is reverting to its more predictable, conservative ways, the report says, warning that this could prove costly when the economy begins to pick up again.

Mark Hunt, partner at BDO Stoy Hayward, said: "Last year, after a period of some restraint, the brakes came off for many Yorkshire businesses and, having carefully managed capital investment in the previous two years, many hit the acquisition trail.

"Shortly after we hit the current downturn, Yorkshire business retreated to the safety of its conservative shell, as it has always done historically.

"What we are now witnessing is a demonstration of steely resilience as we face these tougher times. Traditional Yorkshire grit and determination, qualities that have helped Yorkshire businesses through recessionary times in the past, are being displayed once more."

Mark believes that findings of the Yorkshire Report illustrate how Yorkshire businesses are inherently conservative in both investment and gearing and much more cautious than other regional business sectors, such as the North West.

He said: "While many of us have commented in the past that Yorkshire doesn't appear to have the same level of aggressive entrepreneurialism as some other regions, it does possess a base of well run, well funded businesses.

"There is also an argument that the current climate might be good for some of our regional businesses.

"Yorkshire doesn't have many global consolidators – in fact many of our larger businesses are potential targets for highly leveraged overseas acquirers. A slowdown in high-end corporate deal activity might actually make some of these organisations less vulnerable."

The Yorkshire Report found that nearly a third (29 per cent) of Yorkshire businesses engaged in some form of merger and acquisition activity. This was largely attributable to a number of serial acquirers who drew on the high-quality professional support available in the region.

Mark said: "Yorkshire's business community is largely composed of strategic buyers with a very defined view of pricing. Our regional businesses aren't impulse buyers and they have been reluctant to join in the global scramble for acquisitions at any price.

"Strong balance sheets, low gearing and cautious investing; these are all classic qualities on display by Yorkshire business in a difficult economic climate. The conservatism and aversion to risk enables Yorkshire business to be more resilient when times are hard.

"The real test will be when we emerge from the downturn. There will be some good deals around when the economy picks up again and the more aggressive regions, quicker to invest and displaying a greater propensity for risk – such as the South East – will take advantage of the upturn, possibly at Yorkshire's expense."

This is the second edition of the Yorkshire Report, compiled by the firm's experts by aggregating the figures from the latest available accounts of the region's leading 150 businesses, creating a barometer of economic health in Yorkshire.

Mark added: "The report indicates that we have to continue to be more competitive, increase productivity and deliver more 'value added'.

"If not, some of our traditional Yorkshire industries, where cost efficiency is the prime differentiator, will continue to struggle in the face of low-cost overseas competition.

"The drive to more knowledge-based industries has to continue and skills development must increase. The paradox is that these require investment, at a time when the inherent conservatism in our regional economy says batten the hatches and ride the storm."