The trade association’s business finance update for June 2018 has revealed that loan and overdraft lending from high street banks to non-financial business accounts has decreased to £263.8bn.
However, lending to manufacturers increased by 9.2%.
The mining and quarrying, and electricity, gas and water sectors were also among those to receive more lending, with the annual growth rate rising 2.5% and 1.1%, respectively.
By contrast, lending to construction companies fell by 6.8% to £19.8bn.
- Assetz Capital investors not hopeful of national economic boost
- Industry reacts to slow UK economic growth
- Financial services sector fears UK growth will drop behind G7
Real estate and professional services also saw a decline in lending since last June (-6%).
Stephen Pegge, managing director of commercial finance at UK Finance, said: “Monthly net lending to businesses returned to positive levels in June, driven by continued growth in borrowing in the manufacturing sector.
"However, the broader picture remains mixed, with ongoing economic uncertainty impacting on firms' appetite to borrow and invest in the long term."
Leave a comment