Whilst uncertainty and instability dominates the financial sector headlines there has been positive news for companies within the asset finance sector according to information released this month.
Figures published by the FLA show that asset finance has grown by 8% in the 12 months up to August rising to a total of £30.6bn. During this period all assets increased the amount of new business over the 12-month period.
All asset classes increased new business over the same period, with aircraft, ships, and rolling stock finance growing the most, by 18% to £546m
August Shows Strong Growth
This growth is despite the influence of political factors such as Brexit, which continues to create instability within the finance sector. However, the figures released show that August was a great one for the asset finance industry. New business grew by 18% year on year (YOY) in August .
Geraldine Kilkelly, head of research and chief economist at the FLA said:
“August saw the asset finance market record its strongest rate of new business growth so far this year. The strong performance of the plant and machinery finance sector was driven by higher levels of new finance for manufacturing, construction, and agricultural equipment.”
Growth In Commercial Vehicles As IT Equipment Finance Falls
There was variance in the rate of growth across the different aspects of asset finance. The strongest area was commercial vehicle finance that experienced YOY growth of 28% with business equipment growth not far behind on 24% growth.
Not every sector grew YOY in August with IT equipment finance falling by 10% mirroring similar statistics recently published for the US market.
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