Fall In Business Lending In May
UK Finance has published some figures relating to the amount being borrowed by businesses here in the UK in May 2018. These figures reveal that there has been a drop in the amount lent by 2.5% in comparison to a year ago.
The total amount outstanding in loans and overdrafts for non-financial business accounts in place with banks in the high street amounted to £263.9 billion.
It is also interesting to see that the amount deposited in non-financial businesses accounts with banks in the high street totalled £368.3 billion. This is an increase of 3.1% when compared with 12 months ago.
When you look at the lending figures that have been broken down into various sectors, there has been an increase in the amount lent to electricity, gas and water companies that are now borrowing £7.7 billion with this being an increase of 5.4% in comparison to 12 months ago. There was also an increase in the borrowing of manufacturing companies that have outstanding balances of £17.6 billion with this being an increase of 5.1% when compared to 12 months previously. Accommodation and food services businesses had borrowings of £18.7 billion outstanding in May 2018 with this being a rise of 1.5% when compared to 12 months previously. Agriculture, forestry and hunting businesses were borrowing £14.9 billion with this being 1% higher than a year previously.
The biggest fall in business lending was to recreation and personal services that saw a fall of 8.2% over a 12 month period to £5.7 billion. Construction witnessed a drop of 6.6% to £20.4 billion. Real estate and professional services saw borrowings drop by 6% to £110.6 billion. There was a drop in borrowings within the education sector by 4.5% to £7.8 billion. Public administration and defense had borrowings of £7 billion – a fall of 4.2% in a year. Wholesale and retail trade business borrowing amounted to £27.1 billion – a drop of 2.1%. Mining and quarrying business borrowing also fell by 2.1%. Transport, communications and storage business borrowings fell by 2% to £10.7 billion. The amount borrowed by fishing industries was £0.2 billion – a reduction of 1.7%. The health and social work sector borrowing fell by 1.1% to £14.6 billion.
We trust that you found the above information of interest and here at Commercial Mortgage Link we will continue to provide similar updates periodically.