9 May 2014
Figures released today by the Finance & Leasing Association (FLA) show that asset finance new business grew by 17% in March compared with the same month last year and was 13% higher in the first quarter of 2014 than in Q1 2013. Finance for plant and machinery and business equipment saw the strongest growth in Q1 2014, up by 21% and 20% respectively.
Growth in commercial vehicle finance remained robust at 19%, while IT equipment finance was 11% higher than in Q1 2013.
Commenting, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “In Q1 2014, the asset finance industry returned its best first quarter performance for five years, and the pattern of growth suggests a broad-based recovery in business investment.
“The industry reported higher levels of finance provided to businesses in the agricultural, construction, manufacturing and services sectors in the first quarter.”
Mar 2014 |
% change on Mar 2013 |
3 months to Mar 2014 |
% change on prev. year |
12 months to Mar 2014 |
% change on prev. year |
|
Total FLA asset finance (£m) | 2,353 |
+17 |
5,693 |
+13 |
23,073 |
+8 |
Total leasing and hire purchase excluding high value (£m) | 2,353 |
+23 |
5,626 |
+14 |
22,425 |
+8 |
Data Extracts: | ||||||
Plant and machinery finance (£m) | 482 |
+16 |
1,238 |
+21 |
4,687 |
+11 |
Commercial vehicle finance (£m) | 579 |
+16 |
1,387 |
+19 |
5,427 |
+16 |
IT equipment finance (£m) | 149 |
+29 |
312 |
+11 |
1,574 |
+16 |
Business equipment finance (£m) | 195 |
+24 |
499 |
+20 |
2,014 |
+12 |
Car finance (£m) | 768 |
+27 |
1,681 |
+6 |
6,848 |
+1 |
Aircraft, ships and rolling stock finance (£m) | 5 |
-68 |
37 |
-48 |
272 |
-42 |
Note to editors:
- In 2013 FLA members provided £88.9billion of new finance to UK businesses and households. £22.4 billion of finance was provided to businesses and the public sector, representing almost 30% of all fixed capital investment (excluding real property and own-account software) in the UK last year.