Asset finance new business (primarily leasing and hire purchase) in the UK fell by 6% in September, compared with the same month last year, according to new figures released by the Finance & Leasing Association (FLA).
For the whole of Q3 2017, new business fell by 2% compared with the same quarter in 2016.
While new finance for business equipment grew in September by 4% compared with the same month in 2016, there were falls for new finance for plant and machinery (-8%), car finance (-8%) and IT equipment finance (-4%). Commercial vehicle finance rose 1%.
However, despite the falls, new business for the 12 months to September is still up 6% year-on-year, excluding high value, driven by strong performances earlier in the period.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “September was a quieter month for the business car and plant and machinery finance sectors.
“Nevertheless, the asset finance market has returned a strong performance so far in 2017, with new business overall 6% higher than in the previous year. Over the same period, UK business investment is forecast to have grown by only 2.3%.”
FLA calculations show that the industry financed more than 35% of UK investment in machinery, equipment and purchased software in the 12 months to June 2017 - an eight-year high.
Asset finance new business
% change on
3 mths to
% change on
12 mths to
% change on
|Total FLA asset finance (£m)||2,750||-6||7,574||-2||31,611||+5|
|Total excluding high value (£m)||2,740||-2||7,381||+3||30,579||+6|
|Plant and machinery finance (£m)|| |
|Commercial vehicle finance (£m)||711||+1||1,764||-2||7,488||+2|
|IT equipment finance (£m)||212||-4||549||-5||2,214||-3|
|Business equipment finance (£m)||219||+4||632||+8||2,567||+12|
|Car finance (£m)||888||-8||2,396||+2||9,763||+5|
|Aircraft, ships and rolling stock finance (£m)||20||+24||34||-77||615||+20|
|Direct finance (£m)||1,283||-5||3,711||0||15,506||+4|
|Broker-introduced finance (£m)||520||-4||1,423||+3||5,723||+12|
|Sales finance (£m)||937||+3||2,248||+6||9,350||+6|
|Finance leasing (£m)||344||-3||941||0||4,000||-3|
|Operating leasing (£m)||655||-6||1,658||0||7,063||+6|
|Lease/Hire purchase (£m)||1,434||-2||4,045||+3||16,589||+9|
|Other finance (£m)||316||-24||930||-21||3,959||-4|