News and Events

Record fall in cost of credit

04/09/2012

The UK’s manufacturing companies have reported the cost of credit has fallen to its lowest level in five years, according to research from the Engineering Employers' Federation.

The manufacturing organisation’s quarterly study saw just 11.2% of businesses report an increase in the cost of borrowing between April and June this year, which is down from 21.2% and the smallest figure since the survey began in 2007.

However the research has also found that more are beginning to rely on internal finance to fund their company’s activity – particularly SMEs.

The findings come just a week before official statistics from the Asset Based Finance Association are expected to show that manufacturers remain the industry’s largest client base.

Meanwhile, having contracted by 0.9% during the second quarter of the year, the manufacturing sector has rebounded in August. Although still shrinking according to the Markit/CIPS Purchasing Managers’ Index, production has risen to a four-month high.