Key data highlights:
- Lending to manufacturers grew by 7.4% in the last 12 months, in contrast to a wider 2.1% contraction overall in UK business borrowing.
- UK business deposits for non-financial companies grew by 1.5% in the last 12 months.
Commenting on the data, Stephen Pegge, managing director, commercial finance at UK Finance said:
“It is encouraging to see net lending to businesses growing for the third consecutive month, with borrowing by non-financial companies increasing by £573m in August.
“Lending to the manufacturing sector continues to grow year on year but overall business borrowing remains subdued, as ongoing economic uncertainty impacts on long-term investment decisions.
“There has also been a further slowdown in the growth of business deposits, suggesting firms are experiencing tighter margins as a result of rising input costs.”