New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 10% in March, compared with the same month last year, and by 8% in Q1 2016, compared with the same period in 2015.

IT equipment finance and commercial vehicle finance grew in March by 29% and 5% respectively, but plant and machinery finance fell by 2% over the same period.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: "March saw the asset finance market report its highest level of monthly new business on record. Growth was broad-based with the exception of a fall in new finance for plant and machinery. The slowdown in this sector reflects the apparent weakness of the industrial sector reported in the latest national statistics."

FLA figures
  March 2016 % change on prev year 3 months to March 2016 %change on prev. year 12 months change to March 2016 % change on previous year
Total FLA asset finance (£m) 3,419 +10 7,484 +8 29, 665 +9
Total excluding high value 3,086 +5 7,053 +6 28,524 +9
Data extracts            
By asset            
Plant and machinery finance (£m) 609 -2 1,429 +1 5,826 +4
Commercial vehicle finance (£m) 774 +5 1,771 +9 7,024 +13
IT equipment finance (£m) 260 +29 482 0 2,250 +26
Business equipment finance (£m) 226 +11 550 +3 2,093 -6
Car finance (£m) 1,058 +6 2,224 +9 9,123 +10
Aircraft, ships and rolling stock finance (£m) 22 -84 83 -63 415 -8
By channel            
Direct finance 1,476 +2 3,564 +9 14,389 +11
Broker-introduced finance (£m) 518 +11 1,274 +4 5,076 +7
Sales finance (£m) 1,092 +6 2,215 +4 9,060 +8
By product            
Finance leasing (£m) 367 -2 841 -4 3,695 +1
Operating leasing (£m) 799 -1 1,696 +3 6,706 +8
Lease/Hire purchase (£m) 1,611 -1 3,728 +4 15,221 +10
Other finance (£m) 642 +119 1,218 +48 4,043 +20