New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in July 2022 by 2% compared with the same month in 2021.
In the first seven months of 2022, new business remained 2% higher than in the same period in 2021.
The commercial vehicle finance sector reported new business up in July by 2% compared with the same month in 2021, while new business for plant and machinery was at a similar level to July 2021.
By contrast, the business equipment finance and IT equipment finance sectors reported falls in new business of 22% and 37% respectively, over the same period.
Geraldine Kilkelly (pictured), director of research and chief economist at the FLA, said: “The asset finance market reported further new business growth in July despite an increasingly uncertain economic outlook.
“There were pockets of strong growth as the construction equipment finance sector reported new business up by 10% in July. The new heavy commercial vehicle finance and used commercial vehicle finance sectors also reported strong double-digit growth of 41% and 69% respectively.
“Asset finance continues to play a crucial role in supporting SMEs to recover following the pandemic, with new finance provided to these businesses increasing by 13% in July.
“As the Government considers ways of helping businesses through the worst inflationary environment since the 1970s, we urge it to ensure that any measures to support business investment do not exclude leasing.”
