Key data highlights:
- Lending to manufacturers grew by 4.9 per cent over the last twelve months. While there is annual growth in borrowing demand from manufacturers, agriculture and accommodation, those sectors are in marked contrast to a wider 2.0 per cent contraction in UK business borrowing overall.
- Deposits held by UK non-financial companies grew by 3.6 per cent over the last twelve months.
Commenting on the data, Stephen Pegge, Managing Director, Commercial Finance at UK Finance said:
“Net lending to businesses grew for the fourth consecutive month in September, with total borrowing by non-financial companies increasing by £597m.
“Economic uncertainty continues to impact on businesses’ appetite for finance as overall lending remains slightly below the same period last year.
“However within sectors, the manufacturing, agriculture, accommodation and food services sectors have all seen lending grow year on year.
“Growth of business deposits has picked up slightly compared to recent months, suggesting firms are adopting a ‘wait and see’ approach to investment decisions.”
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.