UK Finance’s latest business update for May 2018

UK Finance’s latest business update for May 2018 reveals that:
• Lending to manufacturers grew by 5.1% in the last 12 months, in contrast to a wider 2.5%contraction overall in UK business borrowing.
• UK business deposits grew by 3.1% in the last 12 months, with total deposits for non-financial companies 5.2% higher compared to May 2017.

Commenting on the data, Stephen Pegge, managing director, commercial finance at UK Finance said:

“There has been steady growth in lending to manufacturing, with the finance industry continuing to support investment in this important sector of the economy.

“However, overall appetite for finance amongst UK businesses remains low, as ongoing economic uncertainty weighs on long-term investment decisions.

“Growth in deposits has also slowed amid less buoyant business conditions, as many firms’ margins are squeezed by rising input costs.”