Corporate banks to support manufacturing growth?

Corporate banks may be well placed to support the expansion of UK industry, as one expert claims low access to finance is the main barrier to manufacturing growth.

Ed Moss, spokesman for independent charity the Manufacturing Institute, notes "restocking activity" is falling, with weak consumer confidence and widespread austerity measures harming demand for goods and trade.

But corporate banks are arguably the most significant element when it comes to sector recovery, as Mr Moss claims "a lack of access to finance" is "a big factor dragging things down".

He suggests fear of 'overstretching themselves' is preventing firms from taking the opportunities that present themselves, with a lack of working credit creating this commercial catch-22.

Office for National Statistics data indicates industrial growth has slowed in recent month, adding just 0.7 per cent in August on a three-month by three-month basis.

The measure peaked at 2.6 per cent in May but ongoing credit shortages may lie behind its current weakness.  ADNFCR-2318-ID-800108638-ADNFCR