UK Finance

Business borrowing contracts by 1.7%

Overall lending from high street banks to UK businesses remains subdued with a 1.7% contraction over the past 12 months, according to the latest figures.

However, UK Finance’s business finance update for November 2018 revealed that lending to manufacturing companies grew by 7% during the same period.

The update found that £262.3bn was lent to non-financial businesses by high street banks over the period.

Deposits held by non-financial UK companies were up 1.6%, with growth in transport, recreational services and electricity, gas and water utilities.

Stephen Pegge, managing director of commercial finance at UK Finance, said that overall lending to businesses had remained subdued in this period of economic uncertainty, with a slight contraction from [November 2017].

“However, lending to manufacturing, transport and service industries have all seen strong annual increases.

“Business deposits have continued to grow, with transport and personal services in particular showing a large increase, further indicating a cautious approach by businesses to trading conditions.”

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