UK Finance has published its Business finance update for September 2018 which reveals that Lending to manufacturers grew by 4.9 percent over the last twelve months. While there is annual growth in borrowing demand from manufacturers, agriculture and accommodation, those sectors are in marked contrast to a wider 2.0 percent contraction in UK business borrowing overall.
Deposits held by UK non-financial companies also grew by 3.6 percent over the last twelve months.
Commenting on the data, Stephen Pegge, Managing Director, Commercial Finance at UK Finance said “Net lending to businesses grew for the fourth consecutive month in September, with total borrowing by non-financial companies increasing by £597m. Economic uncertainty continues to impact on businesses’ appetite for finance as overall lending remains slightly below the same period last year.”
“However within sectors, the manufacturing, agriculture, accommodation and food services sectors have all seen lending grow year on year. Growth of business deposits has picked up slightly compared to recent months, suggesting firms are adopting a ‘wait and see’ approach to investment decisions.”