UK Finance has released its latest Business Finance update for July 2018 which has revealed that lending to manufacturers grew by 7.4 per cent in the last 12 months, in contrast to a wider 2.1 per cent contraction overall in UK business borrowing. UK business deposits for non-financial companies grew by 1.5 per cent in the last 12 months.
Commenting on the data, Stephen Pegge, Managing Director, Commercial Finance at UK Finance said “It is encouraging to see net lending to businesses growing for the third consecutive month, with borrowing by non-financial companies increasing by £573m in August. Lending to the manufacturing sector continues to grow year on year but overall business borrowing remains subdued, as ongoing economic uncertainty impacts on long-term investment decisions.”
“There has also been a further slowdown in the growth of business deposits, suggesting firms are experiencing tighter margins as a result of rising input costs.”