Key data highlights:

  • UK business borrowing contracted slightly by 1.7 per cent in the last 12 months. However within industry sectors there was a mixed picture with manufacturing maintaining strong growth at 8 per cent while construction contracted by 6.3 per cent in the year.
  • UK business deposits grew by 4.4 per cent in the last 12 months down on the previous six month average of 6 per cent.

Commenting on the data, Stephen Pegge, Managing Director, Commercial Finance at UK Finance said:

“Overall demand for finance amongst businesses remains subdued. There has been some fluctuations in business borrowing, particularly in the construction and real-estate sectors.

“This reflects ongoing economic uncertainty, as firms continue to build their deposits and carefully consider long-term investment decisions.”

Notes to Editors

  1. For more information please call the UK Finance Press Office on 020 7416 6750 or e-mail press@ukfinance.org.uk.
  2. UK Finance is the trade association formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The organisation brings together most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.
  3. Data in this update reflect lending and deposit activity conducted by UK large, medium and small businesses with the main high street banks. This coverage reflects around three-quarters of UK business finance provided by all banks and building societies.
Attachments
Business Finance Update – April 2018