LENDING conditions have begun to stabilise for North West manufacturers, according to a survey released by EEF, the manufacturers’ organisation.

However the study also says that the overall picture remains mixed with few signs that the flow of lending to business has eased significantly. The third quarter survey of access to finance and cost of credit comes ahead of next month’s report from the Independent Commission on Banking. EEF used the results to call for greater competition among Banks to improve business lending.

EEF North West region director, David Ost, said: “The improvement in availability last quarter has now been accompanied by some easing in the numbers of firms facing a rise in the cost of finance.

“While conditions are slowly heading in the right direction the overall picture remains far from being as supportive as we’d like.

“There is clearly more finance available but the fact more companies are still reporting an increase in cost rather than a decrease suggests that firms are paying a price for it.

“With global clouds of uncertainty providing enough reasons for firms to hold off investment this is the time we can least afford to add any further constraints.”