New business provided to fund investment in construction equipment grew in October by 41% to £134 million and by 13% over the last 12 months to £1.2 billion, according to latest figures from the Finance & Leasing Association (FLA).

It was also a good month for the commercial vehicle and IT equipment finance sectors, with double digit growth in new business of 13% and 12% respectively.

Overall, the asset finance market reported growth of 4% to £1.9 billion in October for new business deals of up to £20 million. This market has grown each month since April 2013, with new business up in the first 10 months of the year by 2% to almost £17.7 billion compared with the same period in 2012.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance industry is in a unique position to support businesses as the recovery takes hold. It funds investment in the key equipment that businesses need if they are to expand to meet stronger domestic demand.

“The FLA’s Q4 2013 Asset Finance Confidence Survey suggests that the industry’s senior executives are cautiously optimistic about economic prospects and market conditions over the next year, with a majority expecting growth of up to 10% in each of the main channels for new business.”