Asset finance new business grew by £2.5bn (€3bn) year-on-year in October for an increase of 1%, driven mostly by direct finance, according to the Finance & Leasing Association.
The increase marks the 37th consecutive month of growth, and was driven by strong growth in business equipment finance and plant and machinery finance, which grew by 16% and 10% respectively.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
By channel, direct finance dominated October, increasing 4% to represent £1.3bn, as the role of brokers declined with broker-introduced finance down by 3% over the same period.
Aircraft, ships, and rolling stock finance experienced the largest percentage year-on-year growth in October, increasing 90% to £46m, while the value of IT equipment finance declined by 10% over the same period, falling to £160m.
Although leasing and hire purchase made up the majority of new business in October, representing £1.3bn, it declined by 3%, as other finance saw a 27% increase.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “October saw robust growth in some key asset sectors.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“In particular, new finance for agricultural equipment and construction equipment increased by 19% and 7% respectively, compared with October 2015.”
