“Encouraging” signs that the UK economy is growing at a stronger pace than previously estimated are positive but figures for transport and storage highlight the pressures hauliers remain under, according to Logistics UK.
The Office for National Statistics (ONS) said GDP increased by 0.5% between April and June, rather than the previously estimated 0.4%
Between January and March the economy grew by 0.6%.
A so-called ‘Burnham bounce’ has been cited as one reason for the increase, as well as households being able to put some of their income rise into savings.
The ONS said business investment also increased during Q2.
Logistics UK said it showed that the economy was gathering momentum, but policies were needed to support long-term growth, with transportation and storage showing just 0.05% growth during the second quarter.
“It is an encouraging sign that economic activity is gaining momentum across the UK with GDP growth between April and June estimated to be 0.5% alongside services sector growth of 0.6%,” said Ben Fletcher, Logistics UK CE.
“However, the more subdued picture for Transportation & Storage over this period reflects the cost pressures driven by the early stages of the Middle East conflict.
“Nevertheless, by remaining stable despite significant international pressures, the sector has demonstrated its resilience as the UK’s supply chains continue to support and enable growth across the wider economy.”
Fletcher said the ONS figures demonstrated the importance of policies that supported business investment, improved infrastructure and reduced barriers to growth.
“A competitive and efficient logistics industry is essential to strengthening economic performance and helping the UK return to sustainable growth,” he added.
