Business borrowing continued to moderate throughout last year, with the major sectors of manufacturing, wholesale and retail business showing only modest annual growth.
However, the construction and property-related sectors have contracted their bank borrowing over 2017.
Eric Leenders, managing director of commercial and personal finance at UK Finance, said: “[The] data reflects a continuing trend that we have seen throughout 2017: ongoing activity in the mortgage market and a shift towards more flexible and affordable personal credit options.
“But there are signs of caution from the business community, which could indicate that many firms are choosing to build up capital rather than borrowing to invest.
“Increasing numbers of first-time buyers, low interest rates and a competitive marketplace have helped build up mortgage activity through the year, with gross lending standing at 9% higher than at the same point in 2016.
“Credit card spending has continued to rise as more financial transactions are now carried out using cards, mirroring the declining use of loans and personal overdrafts.
“However, business borrowing has continued to moderate through 2017, with the major sectors of manufacturing, wholesale and retail business showing only modest annual growth, while construction and property-related sectors have contracted their bank borrowing over the year.”
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