New figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) fell in June by 3% compared with the same month in 2017, but grew by 5% in the second quarter of 2018 as a whole.

The commercial vehicle finance and IT equipment finance sectors reported new business up by 9% and 15% respectively in the second quarter of 2018 compared with the same quarter in 2017.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: The asset finance market reported new business up in the first half of 2018 by 1% compared with the same period a year earlier.  This was in line with modest growth in UK business investment over the same period.”

Jun 2018

% change on prev. year

3 months to Jun

2018

% change on prev. year

12 months to Jun

2018

% change on prev. year

Total FLA asset finance (£m)

3,044

-3

8,709

+5

31,846

+1

Total excluding high value (£m)

2,869

-4

8,067

+3

30,023

+2

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

622

-15

1,794

0

6,554

+2

Commercial vehicle finance (£m)

706

+2

2,039

+9

7,575

+1

IT equipment finance (£m)

326

+26

632

+15

2,401

+6

Business equipment finance (£m)

260

-8

670

-2

2,569

+2

Car finance (£m)

827

-10

2,586

0

9,353

+1

Aircraft, ships and rolling stock finance (£m)

39

+188

69

-76

230

-68

 

By channel:

Direct finance (£m)

1,428

-7

4,018

0

14,920

-1

Broker-introduced finance (£m)

519

+14

1,576

+13

5,903

+8

Sales finance (£m)

922

-6

2,473

+3

9,200

+3

 

By product:

Finance leasing (£m)

367

-4

1,006

+4

3,878

+4

Operating leasing (£m)

522

-19

1,475

-18

6,220

-9

Lease/Hire purchase (£m)

1,683

+6

4,957

+11

17,370

+5

Other finance (£m)

332

-21

827

-11

3,051

-15