Business lending predicted to shrink in wake of Brexit vote

Borrowing by firms will drop by 1% this year, EY Item Club forecasts, withconsumer lending also expected to weaken

Bank lending to businesses is set to fall in the aftermath of the Brexit vote, while demand for consumer credit and mortgages will also weaken as people spend less on big-ticket items, a report predicts.

Business lending is predicted to shrink by around 1% this year, 1.8% next year and a further 1% in 2018, according to the EY Item Club’s latest report on financial services. Lending had been expected to rise this year and beyond, after a steady decline since the financial crisis.

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Read the original at Economics | The Guardian.