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16 May 2013 | Andy Allen
The volume of UK air transactions reflects the country’s wider economic health as measured in the Markit/CIPS Manufacturing Purchasing Managers’ Index, the Guild of Travel Management Companies (GTMC) has found.
The GTMC’s latest quarterly review found the amount of business travel purchased by UK companies moved in tandem with the PMI, which measures data such as new orders, purchases, employment and supplier delivery time in more than 600 organisations.
Overall, the GTMC’s figures showed a 3 per cent decrease in business travel volumes in the first quarter of 2013 compared to the first quarter of 2012.
Business travel volumes also correlate to GDP figures – though only after a six-month lag - according to the report. It noted volumes also reflects levels of business confidence measured by the ICAEW/Grant Thornton Business Confidence Monitor.
The GTMC report said in the fourth quarter of 2012 the business confidence index soared from 4.2 to 12.7, at the same time as business air transactions showed a similar increase.
Corporate profitability was also strongly linked to business travel volumes, according to the report’s authors, but the precise time-lag governing the relationship between the two figures has yet to be established.