EEF say’s lending situation improving for manufacturers’

The manufacturers’ organisation EEF has recently announced that the lending situation for manufacturers in the UK has started to stabilise. Although there are improvements in lending, EEF has said that firms are paying for this by having increased costs. This is due to the fact that lending rates are remaining high and some are seeing increased rates on previous borrowing.

Lee Hopley is the chief economist at EEF and has said, “While we are seeing a movement in the right direction this is far from a perfect situation for borrowers. Firms are not expanding currently because of economic uncertainty and the fact that borrowing is remaining difficult is not helping matters.

The Independent Commission has recently advised the government to encourage more competition in the small business banking market and investigate the barriers that make it challenging for firms to switch their banks to find better deals.

The Confederation of British Industry has recently announced that manufacturers in the UK are readying themselves for a decline in business. A recent survey by the confederation has said that companies are not planning to expand but only invest in the replacement of current infrastructure rather than spending money on increasing capacity.