U.K. Manufacturers' Credit Conditions Stabilizing - Survey

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Credit conditions in the U.K. manufacturing sector are starting to stabilize but demand for credit remains muted, a survey has found.

Manufacturers' group EEF said 32% of survey respondents reported an increase in the overall cost of finance from banks and other finance providers, unchanged from the last two months. Some 40% of companies saw the cost of new borrowing rise in the past two months, down from 47% in the previous quarter.

But demand for finance has been relatively muted in manufacturing, according to the survey of more than 300 companies.

A quarter of businesses surveyed sought finance for working capital in the past two months, of which 58% secured all they needed while 32% obtained part of their needs.

But more companies expected their requirements to increase in the next two months, including many that had not sought finance for working capital so far this year.

Credit conditions in the U.K. manufacturing sector are starting to stabilize but demand for credit remains muted, a survey has found. (Market News Provided by RTTNews)