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UK Logistics Confidence Index shows better mood than earlier reading

SIXTY-ONE per cent of those surveyed in the UK Logistics Confidence Index rated business conditions in the second half as more favourable, compared to 26 per cent in the first half of 2013.

The index, based on a twice-yearly survey undertaken by research agency Analytiqa for Grant Thornton UK LLP and Barclays, found that seven per cent stated that the current outlook had worsened with 32 per cent saying that conditions had stayed the same.

"With logistics a leading indicator on manufacturing and retail activity, the marked rise in confidence is an encouraging sign for the UK economy," said Rob Riddleston, head of transport and logistics at Barclays.

Looking ahead to the next six months, the majority of respondents believe the outlook is likely to improve further with 55 per cent expecting more favourable conditions, while 35 per cent said it would stay the same and 10 per cent said they would deteriorate.

Eighty-four per cent said revenues would improve in the coming year with 48 per cent expecting an increase of five per cent and 16 per cent expecting a rise of 10 per cent.

Profit expectation also increased with 73 per cent of logistics operators surveyed expecting a rise over 2014. Thirty-eight per cent predicted five per cent with 16 per cent expecting an increase of 10 per cent.

Nine per cent saw a decrease in profit this year, compared to 15 per cent in the first half of 2013.

Investment intentions were also high. Operators said they were looking to invest in fleets, infrastructure and technology to drive growth and competitiveness.

Following a promising start to 2013, confidence in the sector continued to grow throughout 2013 and the latest figure marks the highest index rating and largest half-year increase since the survey was launched in H1 2012.

Said Grant Thornton UK LLP partner Darren Bear: "Operators have entered 2014 on a strong footing, confident that the wider economic revival will continue to drive demand for logistics services. This momentum is encouraging."