UK Finance has published its July Business Finance update indicating that lending to manufacturers grew by 7.1 per cent in the last 12 months, in contrast to a wider 2.2 per cent contraction overall in UK business borrowing. Whilst K business deposits for non-financial companies grew by 1.9 per cent in the last 12 months.
Commenting on the data, Stephen Pegge, Managing Director, Commercial Finance at UK Finance said “Lending to businesses saw modest net positive growth for the second month in a row, driven largely by increased borrowing in the manufacturing sector. However, overall demand for finance remains subdued amid ongoing economic uncertainty. “
“Growth in business deposits has also slowed, suggesting firms are seeing their margins squeezed by inflationary pressures.”