Latest figures from the Finance & Leasing Association (FLA) show that asset finance new business grew by 2% in July 2015, the 22nd consecutive month of growth.

Total FLA asset finance in July was £2.45 billion.

The industry, through the provision of leasing and hire purchase, financed 28.2% of all UK investment in machinery, equipment and purchased software in the 12 months to June 2015, a five-year high.

IT equipment finance grew by 37% compared with July 2014, while commercial vehicle finance and business equipment finance grew by 12% and 3% respectively over the same period.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance industry has helped to drive the recovery in business investment over the last year. The latest figures show particularly strong growth in new finance for construction plant and IT equipment, up 19% and 35% respectively over the last 12 months.”