MANUFACTURERS’ organisation EEF reports that the cost of credit in the North West has remained unchanged.

A survey published today, covering the past two months, shows little change, although there are signs that supply problems are starting to moderate for medium and larger companies.

The findings show 31% of companies reported an increase in the overall cost of credit, compared with 34% in quarter two and 32% in quarter one.

The availability of new lines of borrowing increased for 13% of companies, compared with 8% in quarter two.

But the cost of new borrowing rose for 37% of companies, up from 32% in quarter two.

For companies with existing credit facilities, including overdrafts, the rates and fees were unchanged for 78% and 73% of firms respectively, largely unchanged from the previous quarter.

North West EEF director David Ost said: “This was never likely to be a swift or easy process, but we are concerned that the rise in the cost of new borrowing may be signalling that the supply of finance is not able to keep up with the upturn in manufacturing activity.”