Asset finance figures suggest broad-based recovery in investment

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:

  1. 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.

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