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Further growth in asset finance in October

9 December 2016

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 1% in October, compared with the same month last year – the thirty-seventh consecutive month of growth.

New business reported by the business equipment finance and plant and machinery finance sectors grew in October by 16% and 10% respectively, while commercial vehicle finance fell by 1% over the same period.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“October saw robust growth in some key asset sectors. In particular, new finance for agricultural equipment and construction equipment increased by 19% and 7% respectively, compared with October 2015.

“The continued growth in asset finance new business means that the industry has increased its contribution to funding UK investment. In the twelve months to September 2016, the percentage of UK investment in machinery, equipment and purchased software financed by FLA members was 32.8%, the highest percentage reported since Q1 2009.”

Oct

2016

% change on prev. year

3 months to Oct 2016

% change on prev. year

12 months to Oct 2016

% change on prev. year

Total FLA asset finance (£m)

2,502

+1

7,608

+10

30,276

+8

Total excluding high value (£m)

2,461

+2

7,359

+9

28,880

+7

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

477

+10

1,516

+15

5,906

+3

Commercial vehicle finance (£m)

628

-1

1,890

+9

7,353

+12

IT equipment finance (£m)

160

-10

562

-5

2,260

+3

Business equipment finance (£m)

183

+16

590

+23

2,345

+12

Car finance (£m)

834

-4

2,349

+5

9,231

+4

Aircraft, ships and rolling stock finance (£m)

46

+90

90

-11

534

+7

 

By channel:

Direct finance (£m)

1,314

+4

3,722

+10

14,887

+9

Broker-introduced finance (£m)

425

-3

1,363

+17

5,023

+9

Sales finance (£m)

722

+3

2,274

+3

8,970

+2

 

By product:

Finance leasing (£m)

293

-7

899

+8

3,900

+12

Operating leasing (£m)

591

+8

1,813

+9

7,016

+8

Lease/Hire purchase (£m)

1,343

-3

3,979

+3

15,460

+4

Other finance (£m)

275

+27

917

+55

3,899

+22

Note to editors:

  1. In 2015, FLA members provided £110 billion of new finance to UK businesses and households. £29 billion of finance was provided to businesses and the public sector.  FLA members financed almost 32% of UK investment in machinery, equipment and purchased software in the UK in 2015.