According to new data from UK Finance, businesses are building up deposits and shying away from taking out loans.
UK Finance found business borrowing from high street banks has slowed in 2017 with the biggest easing in wholesale and retail businesses. Borrowing by non-financial businesses rose by just 2% in September, which is below recent averages, and the capital given out, £12.7bn, was down on the same period in 2016.
Manufacturers are feeling less optimistic, with lower than expected order books leading them to put off investment in new workspace.
UK mortgage approvals also fell, reaching a six-month high of 41,762 in August, 41,584 in September, 7% higher than in September 2016, and above the six-month average of 41,006. The banking association claimed that modest momentum has been building in the UK housing market over the past 12 months.
Expectations for a November interest rate hike by the Bank of England, combined with political uncertainty around Brexit, resulted in subdued house buyer demand.