Headline findings include:

Business outlook and financial health

• UK economic outlook decreased to 3.6 out of 10 in Q3, down from 3.7 in Q2. This was the lowest since Q3 2023.
• UK business outlook decreased significantly to 6.0 out of 10 in Q3, down from 6.3 in Q2.
• Financial health of UK logistics companies increased to 7.3 out of 10, which was the fifth consecutive quarter of increases.

Business impacts

• The ability for companies to pay their suppliers was the only area in positive territory for the second consecutive quarter.
• The area expected to be impacted most negatively was the cost of living once again, which is a result of the inflation rate remaining above the long-term target.

Supply chain issues

• With fuel costs making up a significant portion of overall vehicle costs, during a time of increasing fuel prices it was expected that transportation costs would be negatively impacted.
• The most positively impacted area in Q3 was delays in receiving goods, which overtook disruptions at UK borders from Q2.

Freight rates and warehousing

• When looking ahead to the final quarter of 2025, particularly in relation to international shipping conditions, there is expected to be relative stability in the market.
• Air and rail freight capacity once again scored the highest of all areas, with delays at ports and routes remained the most problematic.
• Domestic road freight rates are expected to increase by 1.8% in Q4, which is a lower increase than that expected for Q3. Sea freight rates are also expected to see a slower increase than earlier in the year.

Staffing and skills

• Logistics businesses in the UK are still finding the conditions tough when it comes to hiring people to fill key roles in their organisations. With the ongoing trend of struggling to hire technicians, mechanics and fitters continuing in Q3.
• Hiring HGV drivers was reportedly easier in Q3 than in Q2, although still in negative territory.
• As demand for van drivers increased due to the upcoming festive season, hiring for these roles was more difficult for logistics companies than earlier in the year.