Asset finance new business grew by £2.5bn (€3bn) year-on-year in October for an increase of 1%, driven mostly by direct finance, according to the Finance & Leasing Association.
The increase marks the 37th consecutive month of growth, and was driven by strong growth in business equipment finance and plant and machinery finance, which grew by 16% and 10% respectively.
Go deeper with GlobalData
By channel, direct finance dominated October, increasing 4% to represent £1.3bn, as the role of brokers declined with broker-introduced finance down by 3% over the same period.
Aircraft, ships, and rolling stock finance experienced the largest percentage year-on-year growth in October, increasing 90% to £46m, while the value of IT equipment finance declined by 10% over the same period, falling to £160m.
Although leasing and hire purchase made up the majority of new business in October, representing £1.3bn, it declined by 3%, as other finance saw a 27% increase.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “October saw robust growth in some key asset sectors.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“In particular, new finance for agricultural equipment and construction equipment increased by 19% and 7% respectively, compared with October 2015.”
