Asset finance new business (primarily leasing and hire purchase) grew by 9% in May, compared with the same month last year, the Finance & Leasing Association (FLA) has revealed.

Commercial vehicle finance increased by 21% in May compared with the same month in 2015. Business equipment finance and IT equipment finance were up 27% and 32% respectively over the same period.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “Growth in asset finance new business rebounded in May, as a wider range of asset sectors reported strong growth.

“The latest official data from the Office for National Statistics confirmed our estimates that FLA asset finance providers funded 31.8% of total UK investment in machinery, equipment and purchased software in the twelve months to March – the highest percentage for almost seven years.”