Total asset finance new business (primarily leasing and hire purchase) grew by 1% in February 2021 compared with the same month in 2020, according to new figures by the Finance & Leasing Association (FLA).
The plant and machinery finance and commercial vehicle finance sectors reported new business up in February by 14% and 8% respectively, compared with the same month in 2020, the FLA said.
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By contrast, the IT equipment finance and business equipment finance sectors reported falls in new business of 20% and 24% respectively, over the same period.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “In February, the asset finance market reported new business growth for the first time in more than a year.
“FLA members reported growth in new finance for a range of assets including agricultural equipment, manufacturing equipment and printing equipment.
“While the FLA welcomes the measures announced in the Budget to ensure that a strong pick-up in business investment is part of the UK economic recovery, we urge the Government to extend the super-deduction allowance for expenditure on qualifying plant and machinery to include leasing.
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By GlobalData“The asset finance industry has a proven track record in supporting businesses to invest in a wide range of machinery and equipment, with as much as 40% of this investment in the UK funded by FLA members.”
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