German equipment leasing grew 10% in the first half of 2014 compared to the same period 2013, according to data from the German leasing association Bundesverband Deutscher Leasing-Unternehmen (BDL).
"In view of the dampening effect that the geopolitical tensions of the second quarter have had on the investment climate, and given the continuing lacklustre performance of the economy, we are very pleased with this result," BDL chief executive officer Horst Fittler said.
New business growth was driven by the vehicle leasing sector, where commercial vehicle leasing went up 19% and passenger car leasing 10% year-on-year.
The intangible item (e.g. software, brands) leasing sector performed similar well with a growth of 11 percent in the six first months of 2014 compared to the first half of 2013.
Also machine leasing, which was stagnating in the first quarter, stepped up in the second quarter and grew 5% compared to last year’s Q2.
On the downside, the office and IT equipment sector shrank by 3% in the first half of 2014 year-on-year. Fittler explained the sector was booming the first 3 months of the year, but collapsed in the second quarter, shrinking 14%.
According to Fittler, the outlook for the German leasing for the second half of the year is clouded, mostly due to the shrinking investment rates across the German economy.
"Particularly in times of uncertainty, companies need incentives to invest in the future", Fittler argued, and therefore he called on the German government for more investment stimulating policies.