Lending to private, non-financial companies in the U.K. shrank in the first month of the year, although a smaller contraction that lending conditions could be improving, according to Financial Times. On Wednesday, the British Bankers’ Association reported that lending to U.K. companies contracted by £0.3 billion in January, which is down from £3.4 billion in December and well below the six-month average drop of £1.7 billion. Net mortgage lending saw a small rebound in January, and posted the highest lvel of lending since August 2010.
BBA statistics director David Dooks said, “We are seeing little change in the borrowing environment for households or businesses,” and the report showed that long-term lending conditions remain tight. Dooks added, “In both unsecured borrowing and company finance, the emphasis is on repayment rather than new borrowing.” The data showed new consumer borrowing totaled £7 billion, while repayments totaled £7.4 billion, while credit card lending posted a 0.1% gain. Separately, the Bank of England reported that credit conditions appear to be easing for large companies, although the financing remains high above pre-crisis levels.