Key data highlights:
- 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.
- UK 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.”
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 around 250 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.