Nine out of ten transport companies reckon they are doing as well or better than last year, according to Bibby Financial Services.
And Bibby’s Business Factors Index suggest that more than one in ten transport businesses believe they have never been in better shape.
The confidence of transport companies in their ability to prosper is set against a background of slow growth in the rest of the economy.
Nearly 60 per cent believing the effects of the recession could be felt for at least two years, corroborating the results of the latest CBI economic forecast which warned that the UK is likely to experience slow growth in 2011-2012.
The indextracks the turnover levels among nearly 4,000 of Bibby Financial Services’ UK client-base alongside the outlook of 450 business owners across the UK. It found that almost three-quarters of transport businesses have seen an increase in the number of customers from the first three months of this year and half have experienced a rise in the number of business inquiries.
Edward Rimmer, UK chief executive at Bibby Financial Services, said: ““The fact that our Business Factors Index revealed the sector underwent a period of substantial growth in Q1 only serves to remind us of the current volatile economic landscape. And with no end in sight to the planned cuts in government expenditure, increased tax, fuel and rising inflation, businesses within the sector are likely to be placed under additional pressure. The upshot of these, together with the adverse impact on cash flow, suggests many transport firms could be in for a bumpy ride.”
