Key data highlights:
- Lending to manufacturers grew by 6.9 per cent over the last twelve months, in contrast to a 1.9 per cent contraction in overall UK business borrowing. There was also annual growth in borrowing by the agriculture and accomodation sectors.
- Deposits held by UK non-financial companies grew by 3.4 per cent over the last twelve months with annual growth in transport, electricity, gas and water above the overall growth.
Commenting on the data, Stephen Pegge, Managing Director, Commercial Finance at UK Finance said:
“Appetite for finance amongst business remains subdued with overall borrowing down slightly from the same period last year.
“However, lending to the manufacturing, agriculture and accommodation sectors has increased.
“Business deposits also continue to grow, which suggests firms are stockpiling cash in the face of an uncertain economic climate.”
Notes to Editors
- For more information please call the UK Finance Press Office on 020 7416 6750 or e-mail firstname.lastname@example.org.
- UK Finance is the trade association formed on 1 July 2017 to represent the banking and finance industry operating in the UK. It represents more than 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.