The Fork Lift Truck Association's (FLTA) new market analysis report shows modest but clear indications of increased demand for new forklifts, but less grounds for optimism in other areas.

Figures for the third quarter of 2002, based on a compilation of FLTA members' reports, showed improvements in new equipment sales and casual hire. Profit margins on new equipment also increased slightly. But used truck sales, volumes and margins declined.

The FLTA said replacement of large fleets in the contract hire sector, and high levels of consumer spending, were helping ensure demand for materials handling equipment would remain stable.

"With FLTA members accounting for 90 percent of forklifts sold or hired in the UK, the figures they produce make these quarterly surveys very accurate guides to market trends," said FLTA chairman Brian Warbrick.

"Bearing this in mind, the current results should give cause for cautious optimism in the industry."