UK Finance has released it’s business finance update for October 2018 which reveals that Lending to manufacturers grew by 6.9 percent over the last twelve months, in contrast to a 1.9 percent contraction in overall UK business borrowing.

There was also annual growth in borrowing by the agriculture and accommodation sectors. The findings also revealed that deposits held by UK non-financial companies grew by 3.4 percent over the last twelve months with annual growth in transport, electricity, gas and water above the overall growth.

Commenting on the data, Stephen Pegge, Managing Director, Commercial Finance at UK Finance said “Appetite for finance amongst business remains subdued with overall borrowing down slightly from the same period last year. However, lending to the manufacturing, agriculture and accommodation sectors has increased. Business deposits also continue to grow, which suggests firms are stockpiling cash in the face of an uncertain economic climate.”