Logistics UK: Transportation & Storage sector subdued despite 0.5% UK GDP growth

The UK economy grew 0.5% between April and June 2026, but Logistics UK says Transportation & Storage sector figures tell a more subdued story, with operators still facing challenging trading conditions.

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Logistics UK: Transportation & Storage sector subdued despite 0.5% UK GDP growth
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Logistics UK has welcomed new GDP figures showing the UK economy grew by 0.5% between April and June 2026, with the services sector expanding 0.6%, but said Transportation & Storage sector figures painted a more subdued picture reflecting pressures faced by logistics operators during the period, according to Materials Handling World.

Logistics UK chief executive Ben Fletcher said the broader growth figures were encouraging: "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%."

Fletcher said the logistics sector had faced cost pressures linked to the early stages of the Middle East conflict but had remained stable despite wider international disruption.

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"As the sector responsible for keeping goods moving throughout the UK, logistics is often one of the clearest indicators of wider economic conditions," Fletcher said, adding that the latest Transportation & Storage figures highlighted the challenging trading conditions still affecting many businesses.

Logistics UK is calling for policies that encourage business investment, improve infrastructure and remove barriers to growth, saying a competitive and efficient logistics sector would be important to strengthening the wider economy. "The logistics sector remains resilient, but today's figures demonstrate the importance of policies that support business investment, improve infrastructure and reduce barriers to growth," Fletcher said.

Logistics UK represents businesses across road, rail, water and air freight, as well as retailers, manufacturers and other companies reliant on the movement of goods, and says the sector is navigating long-term changes including decarbonisation, new technology and supply chain disruption.

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