Asset finance industry funds 32% of UK business investment
Figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 5% in August compared with the same month last year – the twenty-third consecutive month of growth.
August saw strong growth in new finance provided for IT equipment and commercial vehicles, up by 81% and 15% respectively compared with August 2014.
Following revisions to official business investment data published by the Office for National Statistics (ONS), the percentage of UK investment in machinery, equipment and purchased software financed by the asset finance industry has been revised up to 32.0% in the twelve months to June 2015.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The revised ONS business investment figures show that the industry’s contribution to the funding of investment is much greater than previous data suggested. The percentage of UK investment in machinery, equipment and software has grown from a low of just over a quarter in 2010 to almost a third in the year to June 2015.”