The annual fleet barometer is supported by vehicle leasing and fleet management company Arval and includes more than 4,800 interviews with fleet decision makers across 16 countries.

The independent research for the UK shows that cost pressures continue to grow, with around 40% of fleet decision makers expecting them to rise this year; slightly less than in previous years, but still a notable proportion.

As David Tinsley, Economist at BNP Paribas explains, economic conditions are improving but remain challenging none the less: ‘The outlook for the UK economy has improved somewhat of late and it appears that from here the economy ought to be able to show growth over the remaining quarters of 2013. That said, this expansion is not likely to be dramatic. There are still many headwinds facing the UK, from slow growth in the Eurozone to public sector consolidation at home.’ 

Mike Waters, senior insight & consultancy manager at Arval, commented: ‘When budgets are under pressure, businesses must be in a position to make the most cost effective decisions. The response from fleet operators this year is to be expected but clearly reinforces the importance of taking a whole life cost approach and to really understand developments in the market. This provides the only way to make the most prudent decisions throughout the lifetime of a vehicle.’ 

Despite these conditions, fleet operators at larger companies are bullish that the number of vehicles they operate will grow. The research demonstrates that 29% of UK fleet operators at companies with 100 or more employees expect the fleet to expand (an 18% balance). This is a higher proportion than we saw in the past three years, a higher proportion than in other European countries and a more optimistic outlook than that of companies with less than 100 employees. 

Waters added: ‘It is an encouraging sign that UK businesses have a requirement for a growing number of vehicles and provides a reminder of the importance of the vehicle fleet to business operation, irrespective of the prevailing economic conditions.’