Latest figures from the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 16% in June, compared with the same month last year, and by 12% in the second quarter of 2017 overall.

The plant and machinery finance and IT equipment finance sectors reported new business up in June by 37% and 17% respectively, compared with the same month in 2016. Over the same period, new finance for commercial vehicles and business equipment grew by 9% and 6% respectively.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance market reported its sixth consecutive month of growth in June, with new business in the first half of 2017 up by 11% compared with the same period in 2016.

“The plant and machinery finance sector has seen particularly strong growth in 2017 so far. In the first six months of 2017, new asset finance for construction and agricultural equipment grew by 34% and 28% respectively, while production and processing plant finance increased by 29%.”