6 July 2018
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 10% in May, compared with the same month in 2017.
New finance for plant and machinery grew in May by 4% compared with the same month in 2017, while the commercial vehicle finance sector reported new business up by 13% over the same period.
Geraldine Kilkelly, Head of Research and Chief Economist, said:
“The asset finance market continued to improve in May after a relatively quiet first quarter. The industry provided further support to the construction, manufacturing and agricultural sectors, with new finance for equipment in these sectors up by 6%, 11% and 22% respectively, compared with May 2017.”
|
May 2018 |
% change on prev. year |
3 months to May 2018 |
% change on prev. year |
12 months to May 2018 |
% change on prev. year |
|
|
Total FLA asset finance (£m) |
2,921 |
+10 |
8,984 |
+3 |
31,926 |
+3 |
|
Total excluding high value (£m) |
2,637 |
+4 |
8,421 |
+3 |
30,127 |
+4 |
|
Data Extracts: By asset: |
||||||
|
Plant and machinery finance (£m) |
586 |
+4 |
1,813 |
+1 |
6,651 |
+7 |
|
Commercial vehicle finance (£m) |
684 |
+13 |
2,182 |
+6 |
7,561 |
+1 |
|
IT equipment finance (£m) |
174 |
+1 |
506 |
-8 |
2,336 |
+5 |
|
Business equipment finance (£m) |
201 |
-13 |
666 |
+5 |
2,588 |
+4 |
|
Car finance (£m) |
870 |
+6 |
2,802 |
+0 |
9,445 |
+2 |
|
Aircraft, ships and rolling stock finance (£m) |
15 |
-85 |
63 |
-81 |
204 |
-72 |
|
By channel: |
||||||
|
Direct finance (£m) |
1,334 |
+5 |
4,245 |
+3 |
15,038 |
+1 |
|
Broker-introduced finance (£m) |
526 |
+2 |
1,630 |
+6 |
5,831 |
+7 |
|
Sales finance (£m) |
777 |
+5 |
2,546 |
+1 |
9,257 |
+6 |
|
By product: |
||||||
|
Finance leasing (£m) |
312 |
+3 |
1,038 |
+4 |
3,886 |
+6 |
|
Operating leasing (£m) |
472 |
-14 |
1,663 |
-16 |
6,335 |
-7 |
|
Lease/Hire purchase (£m) |
1,667 |
+13 |
5,113 |
+9 |
17,273 |
+5 |
|
Other finance (£m) |
302 |
+9 |
802 |
-9 |
3,142 |
-9 |
Note to editors:
- In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £32 billion of finance was provided to businesses and the public sector. FLA members financed a third of UK investment in machinery, equipment and purchased software in the UK in 2017.
- For media enquiries, please contact the FLA press office on 020 7420 9656.