Fewer transport & storage firms saw an increase in January turnover
A new Office for National Statistics (ONS) Business Insights Survey reveals that fewer transport & storage sector businesses reported an increase in turnover compared to any other sector. Even the struggling arts and real estate sectors had more businesses reporting an increase in income.
Looking to the immediate future, things continue to look flat, says the home delivery expert ParcelHero. Only 14.6% of transport sector companies say they expect an increase in turnover in March, the lowest of all sectors except the arts and health.
ParcelHero’s head of consumer research, David Jinks MILT, says: “Transport & storage companies found increasing their turnover a struggle in January. Just 6.7% reported an increase in income against December 2023. Compare that to retail, which saw 18.8% of companies enjoying a boost to their turnover, or manufacturing, which saw a massive 31% of businesses reporting an increase. From these figures, it looks as if the transport & storage sector is stuck in the doldrums.
“Nor does there seem to be much cause for optimism in the near future. A modest 14.6% of transport & storage companies said they believed their turnover will increase in March. In contrast, 25.3% of manufacturers and 25.4% of retailers say they are expecting higher turnover next month.
“If confidently raising prices is another barometer of the health of the transport sector, things are also looking gloomy. Only 8.6% of transport & storage companies plan to raise their prices in March, compared to 17.1% of manufacturers and a hefty 22.6% of retailers. To put that in perspective, only the real estate sector and the arts sector have fewer companies expecting to be able to raise their prices in March.
“However, while the number of transport companies reporting increased turnover in January was the lowest of any sector, that figure does not tell the full story. A deeper dive into these latest ONS business statistics reveals the number of transport companies reporting an actual fall in turnover, as opposed to a rise, was relatively low. In all, 17.9% of transport companies reported their turnover had decreased in January. In contrast, 18.9% of manufacturing companies and a concerning 34.4% of all retailers reported lower turnover in January than in December.
“Obviously, as December is traditionally a boom month for retailing compared to January, that figure is not entirely unexpected. What it does show is that transport & storage sector businesses are reasonably stable, with 66% of businesses reporting static revenues, whereas the situation for their retail partners is increasingly volatile. Some retailers made significant profits in January, while others suffered a serious slump.
