Continued growth in asset finance in July
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 8% in July, compared with the same month last year.
New business reported by the business equipment finance and car finance sectors grew in July by 7% and 4% respectively, while new plant and machinery finance fell by 13% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The asset finance industry reported its 34th consecutive month of new business growth in July. The recent falls in plant and machinery finance reflect the wider economic pressures faced by the manufacturing and construction sectors in the months running up to July. Encouragingly, some recent survey indicators have suggested that the weaker pound is helping to boost exports which should in turn support manufacturers’ confidence to invest. The FLA’s Q3 2016 asset finance confidence survey shows the industry expects overall new business to be broadly stable over the next twelve months.”