The Commonwealth Bank 'Future Business Index' report says  confidence in transport and logistics has plummeted, as industry players view operations for the rest of the year with trepidation.

The report says business confidence is down across the entire economy, but assurance in the transport and logistics sector seems to be dwindling at a significant rate.

Though stating that the retail sector “remains relatively confident, with most organisations predicting higher revenue”, the report adds; “in contrast, the Transport & Logistics sector has moved from the most confident sector in March to one of the least confident in June, with just over half of the companies in the sector (54 per cent) forecasting higher operating costs.”

The report has quantified some of the confusion and concern in people’s outlook; it found those expecting revenue increases fell 3 per cent to 47 per cent, while those expecting a decrease rose from 15 per cent to 23 per cent, respondents expecting profit increases actually rose 7 per cent to 39 per cent while profit decrease expectations declines 2 per cent to 26 per cent.

Commonwealth Bank Chief Economist Michael Blythe says “what is disappointing in terms of the broader outlook is businesses see less chance that domestic demand or the consumer of the global economy will drive future growth, and they are increasingly reliant on the idea that ‘government policy changes’ will ride to the rescue.”