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.
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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."
| 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 |
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