Businesses start to borrow more from their banks
Richard Woolhouse, chief economist, BBA, said: “We’re starting to see signs that businesses from many sectors are starting to borrow more from their bank. While it’s still too early to predict, these figures and the latest data from the Bank of England suggest that business borrowing has turned a corner.
“Savvy savers appear to be continuing to take advantage of good deals, such as pensioner bonds, which is why we’re seeing weaker bank deposits.”
Key points:
– Borrowing by businesses has been positive in two of the last three months and lending has improved across many sectors.
– Deposits with high street banks weakened further in March, in large part reflecting investment into pensioner bonds.
– House purchase approvals are trending upwards, as consumers take advantage of competitive prices in the mortgage market, although lending activity is still down on this time last year.
– Unsecured borrowing stands at its highest annual growth rate since autumn 2010, reflecting improved consumer confidence.
