The Finance & Leasing Association (FLA) has reported that total asset finance new business (primarily leasing and hire purchase) grew by 2% in October 2019 compared with the same month in 2018, and has risen by 6% in the first ten months of 2019.

Within this overall increase, the IT equipment finance sector reported strong double-digit growth in October as new business increased by 43% compared with the same month in the previous year. The business new car finance and plant and machinery finance sectors also reported new business growth of 13% and 5% respectively, over the same period.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance industry is on track to report a record level of new business in 2019 of around £35 billion. The industry has provided support to businesses keen to invest in new technology which will increase productivity and maintain competitiveness.

“Moving forward with the Brexit process should reduce some of the uncertainty that has weighed on business investment since the EU membership referendum. This will provide opportunities for further growth in the asset finance market in 2020.”