Manufacturers see improvement in credit lines

Click to follow
The Independent Online

Credit conditions appear to be improving for British manufacturers, but demand for finance is still muted so the new-found stability is yet to be tested, a survey published this morning will show.

The number of manufacturers reporting rising finance costs is slowing, and fewer reported a reduction in funds from their parent companies, according to the report from the EEF, the manufacturers’ group. A quarter of the 328 respondents sought finance for working capital in the past two months, 58 per cent of whom secured all they need and another 32 per cent obtaining a part.

Lee Hopley, the chief economist at the EEF, said: “Evidence that credit constraints have started to calm down will help build some confidence across the sector. But we are only at the early stages of a recovery and as demand for finance has been subdued the financial system has yet to be tested. The key question is whether the Banks will be there for manufacturers as a return to growth generates greater demand for finance.”

Comments