15 August
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) fell in June by 3% compared with the same month in 2017, but grew by 5% in the second quarter of 2018 as a whole.
The commercial vehicle finance and IT equipment finance sectors reported new business up by 9% and 15% respectively in the second quarter of 2018 compared with the same quarter in 2017. .
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The asset finance market reported new business up in the first half of 2018 by 1% compared with the same period a year earlier. This was in line with modest growth in UK business investment over the same period.”
|
Jun 2018 |
% change on prev. year |
3 months to Jun 2018 |
% change on prev. year |
12 months to Jun 2018 |
% change on prev. year |
|
|
Total FLA asset finance (£m) |
3,044 |
-3 |
8,709 |
+5 |
31,846 |
+1 |
|
Total excluding high value (£m) |
2,869 |
-4 |
8,067 |
+3 |
30,023 |
+2 |
|
Data Extracts: By asset: |
||||||
|
Plant and machinery finance (£m) |
622 |
-15 |
1,794 |
0 |
6,554 |
+2 |
|
Commercial vehicle finance (£m) |
706 |
+2 |
2,039 |
+9 |
7,575 |
+1 |
|
IT equipment finance (£m) |
326 |
+26 |
632 |
+15 |
2,401 |
+6 |
|
Business equipment finance (£m) |
260 |
-8 |
670 |
-2 |
2,569 |
+2 |
|
Car finance (£m) |
827 |
-10 |
2,586 |
0 |
9,353 |
+1 |
|
Aircraft, ships and rolling stock finance (£m) |
39 |
+188 |
69 |
-76 |
230 |
-68 |
|
By channel: |
||||||
|
Direct finance (£m) |
1,428 |
-7 |
4,018 |
0 |
14,920 |
-1 |
|
Broker-introduced finance (£m) |
519 |
+14 |
1,576 |
+13 |
5,903 |
+8 |
|
Sales finance (£m) |
922 |
-6 |
2,473 |
+3 |
9,200 |
+3 |
|
By product: |
||||||
|
Finance leasing (£m) |
367 |
-4 |
1,006 |
+4 |
3,878 |
+4 |
|
Operating leasing (£m) |
522 |
-19 |
1,475 |
-18 |
6,220 |
-9 |
|
Lease/Hire purchase (£m) |
1,683 |
+6 |
4,957 |
+11 |
17,370 |
+5 |
|
Other finance (£m) |
332 |
-21 |
827 |
-11 |
3,051 |
-15 |
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.