Business confidence at new Low
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CONFIDENCE AMONG road transport businesses has fallen to us lowest level this year, despite widespread predictions for increases in turnover and profit in 2011, according to a survey by Grant Thornton.
The UK Business Confidence Monitor. conducted quarterly by the accountancy firm, found confidence in businesses in the transport and storage sector fell more than 20 points to 7.6 points, compared to 29 points in the third quarter. Each of the 1.000 businesses that answered gave a score ranging from +100 (signifying much more confidence) to -100 (much less confidence).
Grant Thornton head of transport Will McWilliams says businesses were less confident, but expect to be more profitable."A lot of businesses took action to deal with the slow down, which will make them more profitable. But the cuts in government spending have had a major impact on the sector."
He adds that some firms are cautious about the level of consumer spending in 2011, given the number of public-sector job cuts and the rise in VAT.
The survey also found that the combined turnover of firms surveyed increased by 2.8% compared to the fourth quarter in 2009 and that firms expected an increase of 3.2% over the next year.
Profit increased 1.9% over the past 12 months and those surveyed expect growth of 2.7% in the next 12 months.