UK asset finance business levels continue to
rise with 12% year-on-year growth recorded in April by the Finance
& Leasing Association (FLA).
New business volumes were also up consistently
in the three-month and twelve-month period to the end of April with
the exception of business equipment finance which dipped 2% over
the three-month period.
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Significant gains in IT equipment finance
continued in April, up 40% year-on-year for the month to £98m and
31% for the three-month period, reaching £313m.
FLA members continued to fund investment in
plant and machinery equipment as well with 16% growth for the month
to £329m and 20% growth for the three-month period, up to
£1.1bn.
The increased asset finance investment in
these sectors is consistent, said the FLA, with first quarter
business investment data from the UK’s Office for National
Statistics which showed growth in investment by the manufacturing
and service sectors.
The UK leasing trade body said its members
have provided £2.3bn more funding to businesses over the last 12
months which it described as clear evidence asset finance is
helping business make the investment they need to prosper and
grow.
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By GlobalDataGeraldine Kilkelly, chief economist and head
of research at the FLA, said: “Despite the challenges in some
sectors, asset finance supports investment in new equipment.
“And our latest confidence survey shows that
asset finance providers are optimistic that they will increase the
amount of equipment finance over the next year.”
The consistently strong sectors of car finance
and commercial vehicle finance were up 8% year-on-year to £619m,
and up 9% to £348m, respectively for the month.
grant.collinson@vrlfinancialnews.com
