Manufacturing Industry Sees Big Rise In Lending
The Bank of England produces lending statistics on a regular basis for a variety of different products including businesses of various sizes and types. It has published some data for the month of July 2017 that makes for interesting reading.
For instance, when comparing July 2017 with the same month last year, the volume of loans outstanding to non-financial businesses classed as large in size with a debit turnover passing through their main bank account of at least £25 million per annum rose by £8.2 billion with the manufacturing sector being the major contributor to this with a rise of £5.7 billion to £39.5 billion. It would be interesting to know what things had such an impact on the amount lent to this manufacturing sector. Total loans to large businesses amounted to £304.2 billion.
Public administration and defence saw the next highest increase in lending in the sector with a rise of £2.3 billion to a figure of £11.2 billion.
In third place was transport, storage and communication with this seeing an increase of £0.5 billion to £21.8 billion.
The biggest fall was in real estate, professional services and support activities with a reduction in loans to large businesses in this sector of £1 billion to £120.7 billion.
It is interesting to compare the lending figures for the manufacturing industry for SMEs with a debit turnover of less than £25 million per annum passing through the main bank account as this industry saw a reduction of £0.1 billion to £10.2 billion. The only industry in the SME sector to see a rise in the amount lent was in agriculture, hunting, forestry and fishing that witnessed a rise of £0.1 billion. In fact, the amount of lending to all industries in the SME sector fell by £0.2 billion to £165.5 billion.
We trust that you find the above of interest. You can read the full set of business lending statistics on the website of the Bank of England.