Business Confidence in the Transport Sector Holds up Despite a
UK Decline in Optimism
Confidence levels among businesses in the transport &
storage sector increased in Q3 2010 while the outlook across the
whole economy weakened, states the latest ICAEW/Grant Thornton UK
Business Confidence Monitor (BCM).
According to BCM, which tracks the confidence levels of UK
finance and business professionals, in Q3 2010, 65% of those in the
transport and storage sector are more confident in the economic
prospects facing their organisation over the next 12 months,
compared to the previous 12 months. Only 12% are less confident
about the coming year. This is a somewhat more positive picture for
the sector than last quarter (Q2) when 59% stated they were more
confident and 20% that they were less confident. Across all sectors
this quarter, 54% are more confident and 19% less confident.
Optimism among businesses in the transport and storage industry
may well be holding up as they stand to gain most from a strong
export market thanks to the relatively weak sterling. This is
despite a decline in UK business confidence overall, driven by
larger service sectors such as retail, business services and
banking, finance & insurance.
The transport & storage sector recorded a Confidence Index*
of 29.0 points in Q3 2010 up marginally from 23.4 points in Q2
2010, while the national Index fell from 25.5 in Q2 2010 to 21.5
this quarter.
The transport & storage businesses surveyed report
marginal growth in turnover (0.3%) and gross profits (0.8%) over
the last 12 months, with somewhat more robust growth forecast for
the year ahead. However at 4.0% and 3.0% respectively, the
forecasts for growth in turnover and profits remain below levels
typically seen before the recession. Prices also saw a slight
increase of 0.9% over the last 12 months, with a modest 1.4% rise
expected over the coming year.
Will McWilliams, Head of Transport at Grant Thornton said: "The
transport sector seems to be holding up better than others due to a
slight increase in overseas orders and growing demand from foreign
customers.
"However, with the Government's October spending review expected
to cut transport spending, we could see confidence in the sector
decline somewhat for the next quarter and beyond. Reducing carbon
emissions within the transport industry is also a priority and
although necessary, policies around this might prove costly for
businesses in the sector, thus impacting on levels of overall
confidence."
For further information please go to icaew.com/bcm
ENDS
For further information, please contact: Stephanie Aneto, Grant
Thornton Press Office: 020 7728 2940. email:
stephanie.aneto@gtuk.com