According to Lloyds Bank’s latest UK Sector Tracker, the transportation sector – which includes airlines, hauliers and rail operators – was impacted by national rail strikes and staff shortages, which resulted in the fastest fall in activity of any sector monitored.
 
In addition, 10 sectors reported falling demand (vs. nine in June), representing the highest number since June 2020.

An unwinding of post-pandemic pent-up demand and increases in the cost of living also impacted tourism and recreation – which includes travel agents and tour operators. 

Nine of the 14 sectors monitored by the tracker saw their output contract (vs. four in June) – the highest number since January 2021.

Jeavon Lolay, head of economics and market insight at Lloyds Bank Corporate and Institutional Banking, said rising inflationary pressures are currently "dampening" activity and demand across the economy.

"This includes a consumer-led slowdown reflecting the fall in real incomes and ongoing supply constraints and staff shortages," Lolay added.