Asset finance new business (primarily leasing and hire purchase) grew by 3% in October, the twenty-fifth consecutive month of growth, the Finance & Leasing Association (FLA) has revealed.

IT equipment finance grew by 2% in October compared with the same month last year, while finance for commercial vehicles and plant and machinery both grew by 1% over the same period.

The asset finance industry financed 32.4% of all UK investment in machinery, equipment and purchased software in the twelve months to September 2015 – its highest level for more than six years.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “October saw continued growth across most of the main asset finance sectors, although the slowdown in emerging markets in recent months and falls in commodity prices have hit demand for construction and agricultural equipment finance.

“The FLA’s Q4 2015 Asset Finance Confidence Survey shows that the industry expects new business to grow by up to 10% in 2016.”