Business lending decreases 1.7%

2nd January 2019

UK Finance has published its latest Household Finance Update for November 2018 which has revealed that overall lending to non-financial UK companies remained subdued, with a 1.7 per cent contraction over the last twelve months. However, some sectors continue to show growth, with manufacturers growing by seven per cent over the year. 

Deposits held by non-financial UK companies grew by 1.6 per cent over the last twelve months, with growth in transport, recreational services and electricity, gas and water utilities.     

Commenting on the data, Stephen Pegge, Managing Director, Commercial Finance at UK Finance said “Overall lending to businesses has remained subdued in this period of economic uncertainty, with a slight contraction from last November. However, lending to manufacturing, transport and service industries have all seen strong annual increases. “

“Business deposits have continued to grow, with transport and personal services in particular showing a large increase, further indicating a cautious approach by businesses to trading conditions.”