BANKS say have reported that lending to businesses appears to have turned a corner, with many different types of companies starting to borrowing more.

The British Bankers’ Association recorded a net £1.6 billion increase in lending to non-financial businesses in March, marking the highest upturn seen since February 2009. Borrowing by financial businesses saw a net £8.5 billion increase last month, showing the biggest upswing seen in more than a year.

The growth in companies’ net borrowing is being fuelled by the wholesale and retail trade, the transport, storage and communication sectors and manufacturing, the report said. Meanwhile, the retail sector, which has been reducing bank borrowing over the past three years, appears to be stabilising, the BBA said.

Richard Woolhouse, BBA chief economist , said: “We’re starting to see early signs that businesses from many sectors are starting to borrow more from their bank. While it’s still too early to predict, these figures and the latest data from the Bank of England suggest that business borrowing has turned a corner.”