Manufacturers still struggle with borrowing

Manufacturing firms have seen no improvement in access to finance and complain that the cost of borrowing continues to rise, according to a new report.

Almost half of 600 firms surveyed by the Engineering Employers Federation said the cost of finance increased in the past two months, while a similar number reported a rise in the fees on existing borrowing.

Chief economist Steve Radley said: "Despite interest rates falling to a historically low level and the efforts to free credit markets so far, manufacturers are seeing few benefits.

"It is important that the Bank of England continues with its quantitative easing programme to prevent higher borrowing costs weakening the recovery we hope to see later in the year."

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