YORKSHIRE manufacturers are starting to feel the benefits of efforts to unblock bank lending, it was claimed today.
But the manufacturers’ organisation EEF said it was too soon to say conditions were back to normal.
EEF member companies have reported an easing in credit conditions for the first time in more than a year.
Regional director Alan Hall said: “Firms have been struggling with credit constraints for the best part of two years, but efforts to restore some normality to financial markets were always going to take time.
“It now appears there is light at the end of the tunnel and conditions are now starting to improve.
“If this continues, it will help allay fears that credit constraints would derail companies’ ability to take advantage of the recovery.
“That said, the Government and the Bank of England will need to move carefully.
“Even as we start to see clearer signs of an upturn, companies will remain vulnerable to higher costs or reductions in the availability of credit.”
EEF has been tracking credit conditions for manufacturers on a quarterly basis since the end of 2007. Fewer companies reported an increase in the cost of credit during the past two months.