The Finance & Leasing Association (FLA) has reported that asset finance new business (primarily leasing and hire purchase) overall grew in July by 8% compared with the same month last year.

New business for deals of up to £20 million increased by 7% over the same period.

The FLA revealed that plant and machinery finance, and commercial vehicle finance sectors reported new business up in July by 12% and 13% respectively, compared with the same month in 2018, while the car finance sector saw growth of 6%.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance market made a solid start to the third quarter of 2019.  Despite subdued levels of business investment, the industry has seen new business grow by 7% in the twelve months to July.

“The commercial vehicle finance and construction equipment finance sectors have returned strong performances in 2019 so far, with new business up in the first seven months of 2019 by 17% and 22% respectively.”