Asset finance new business (primarily leasing and hire purchase) in the UK for deals of up to £20 million grew by 6% in May, compared to the same month last year, according to new data from the Finance and Leasing Association.
When deals over £20 million are included, the market fell by 1%.
New finance for plant and machinery and commercial vehicles both grew by 8% year-on-year during the month, while the business equipment finance sector reported new business up by 3% over the same period.
The car finance market was static, while the IT finance sector fell by 9% year-on-year.
Geraldine Kilkelly, Head of Research and Chief Economist, said: “The asset finance market continued to report growth across many sectors in May, with new business overall up by 8% in the first five months of 2019.
“The strong performance so far this year means that the industry is helping to fund an increasing share of business investment.
“The percentage of UK equipment investment funded by asset finance members in Q1 2019 was 38%, the highest for more than a decade.”
UK asset finance new business demand by sector