Less investment
Page 8
If you've noticed an error in this article please click here to report it so we can fix it.
A third of all transport and distribution companies are less likely to invest in major assets in the second quarter of 1994 because of the effect of April's tax increases.
A survey by Lombard Business Finance shows that 32% of the companies questioned are more gloomy about prospects for growth and therefore less likely to invest. Turnover and profitability predictions have also suffered.
The proportion of transport specialists who expect turnover to rise fell from one in two to one in three between December and March. In the same period the proportion who expect profits to rise fell from 45% to just 13%.
The gloom among transport finance directors is in marked contrast to some other industry sectors. Paul Gee at Lombard Business Finance believes this reflects the pessimism in the retail sector: "Transport and distribution is well down the supply chain and closer to retailers' views," he says.
The 450 respondents to the survey came from manufacturing, construction, transport/distribution, printing and service companies with turnovers over £100,000 a year.