Finance & Leasing Association9 July 2015
New figures released today by the Finance & Leasing Association (FLA) show 6% growth in asset finance new business (primarily leasing and hire purchase) in May, compared with the same month last year.
IT equipment finance saw growth of 39% in May, while in the same period, plant and machinery finance and car finance grew by 6% and 21% respectively.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The asset finance market has recorded its strongest start to a year since the financial crisis, with new business up by 16% in the first five months of 2015.
“Recent research by Oxford Economics showed just how important the asset finance industry is to the UK economy. In 2014, it funded almost 28% of all UK investment in ICT equipment, software, transport equipment and other machinery and supported 84,000 UK jobs.”
| May 2015 |
% change on prev. year |
3 months to May 2015 |
% change on prev. year |
12 months to May 2015 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,151 |
+6 |
7,789 |
+18 |
27,665 |
+15 |
| Total excluding high value (£m) |
2,118 |
+6 |
7,541 |
+16 |
26,641 |
+14 |
| Data Extracts: |
||||||
| Plant and machinery finance (£m) |
458 |
+6 |
1,572 |
+15 |
5,667 |
+17 |
| Commercial vehicle finance (£m) |
481 |
-3 |
1,808 |
+13 |
6,288 |
+8 |
| IT equipment finance (£m) |
143 |
+39 |
481 |
+46 |
1,891 |
+29 |
| Business equipment finance (£m) |
139 |
-20 |
532 |
-1 |
2,210 |
10 |
| Car finance (£m) |
780 |
+21 |
2,676 |
+23 |
8,633 |
+18 |
| Aircraft, ships and rolling stock finance (£m) |
14 |
-60 |
192 |
+225 |
450 |
+59 |
Note to editors:
- An of the Oxford Economics research, measuring FLA members’ contribution to the UK economy, can be found on the website.
- Oxford Economics is one of the world’s foremost independent global advisory firms, using industry models and analytical tools to provide reports and forecast trends.
- In 2014, FLA members provided £100 billion of new finance to UK businesses and households. £26 billion of finance was provided to businesses and the public sector. FLA members finance more than 27% of UK investment in machinery, equipment and purchased software in the UK last year.
