FLA activity playing vital role in economy, says new study

The UK leasing industry has outstripped
plastic product manufacturing, the hotel business and the
aircraft/spacecraft industry in terms of how it is impacting on the
economy, according to a study presented yesterday by the Finance
and Leasing Association (FLA).
 
The report FLA Members’ contribution to the UK economy,
carried out by Oxford Economics, is the first ever study of its
kind of the leasing industry. It concluded that FLA members
directly inject €9.5bn into UK GDP, and may contribute more than
€13.9bn if employment and activity supported by the leasing supply
chain is considered.
 
Some 167,000 jobs are supported by asset, motor and consumer
finance in the UK, while 28 percent of business capital investment
was put down to the work of FLA members, according to the
results.
 
The sector, according to the report, will “play a vital role in
future economic growth” for the UK, not only through its direct
action but also through its stimulating effect on consumer spending
and manufacture. “If the sector did not exist and even allowing for
some replacement finance, there would be 690,000 fewer jobs in five
years’ time, and GDP would be 2.4% lower,” the report said.