Key data highlights:
- Lending to manufacturers grew by 7.4 per cent in the last 12 months, in contrast to a wider 2.1 per cent contraction overall in UK business borrowing.
- UK business deposits for non-financial companies grew by 1.5 per cent in the last 12 months.
Commenting on the data, Stephen Pegge, Managing Director, Commercial Finance at UK Finance said:
“It is encouraging to see net lending to businesses growing for the third consecutive month, with borrowing by non-financial companies increasing by £573m in August.
“Lending to the manufacturing sector continues to grow year on year but overall business borrowing remains subdued, as ongoing economic uncertainty impacts on long-term investment decisions.
“There has also been a further slowdown in the growth of business deposits, suggesting firms are experiencing tighter margins as a result of rising input costs.”
Notes to Editors
- For more information please call the UK Finance Press Office on 020 7416 6750 or e-mail email@example.com.
- UK Finance is the trade association formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents almost 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.
- 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.