TIGHT credit conditions are likely to weaken the economy’s recovery, a survey shows.
The Engineering Employers Federation showed a rise in the cost of borrowing and a fall in the number of firms reporting lower borrowing costs.
Some 47% of member firms faced a rise in the cost of finance from banks and other finance providers in the past two months – against 44% in the second quarter and 37% in the first quarter.
Only 7% saw a fall in the cost of borrowing – down from 10% in the second quarter .
Alan Hall, EEF regional director in Yorkshire, said: “Despite historically low levels of interest rates and significant intervention by the Government and the Bank of England, credit conditions remain very tight for most manufacturers.”