Figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 10% in May, compared with the same month in 2017.
Finance for plant and machinery grew in May by 4% compared with the same month in 2017, while the commercial vehicle finance sector reported new business up by 13% over the same period.
Geraldine Kilkelly, head of research and chief economist, said: “The asset finance market continued to improve in May after a relatively quiet first quarter. The industry provided further support to the construction, manufacturing and agricultural sectors, with new finance for equipment in these sectors up by 6%, 11% and 22% respectively, compared with May 2017.”
Total FLA asset finance for May 2018 was £2.9bn. Over the 12 months to May FLA asset finance was £31.93bn. By asset the biggest sector rise was in commercial vehicle finance, showing a 13% year-on-year increase to £684m.
In July’s magazine Leasing Life spoke to Simon Goldie, head of asset finance at the Finance and Leasing Association (FLA), to find out what industry issues the organisation is expecting to tackle in the coming months.