CBI: Credit conditions easing
Jun 02 2009
New figures from the Confederation of British Industry (CBI) suggest credit conditions for businesses are starting to stabilise.
The organisation's latest Access To Finance Survey shows that companies are less negative about the supply of credit, with a net 20 per cent believing it has deteriorated in the past three months.
This compares favourably to the net 36 per cent which believed this in March and the 62 per cent recorded in January.
In addition, the research reveals that firms expect the easing of new credit supply to continue, with just a net of seven per cent predicting it will fall in the next three months.
CBI chief economic adviser Ian McCafferty comments: 'Credit availability is still a concern, but the severity of the situation is easing compared with a few months ago.'
However, he also explains that businesses are experiencing a lack of trade credit insurance, with a balance of 54 per cent saying its availability has declined in the last three months, and calls for the government to help improve this.
Recent research from the Forum of Private Business found that 12 per cent of small firms believe bank support increased over May, which is the highest level of satisfaction reported since November 2008.
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