The Finance & Leasing Association (FLA) has reported that total asset finance new business (primarily leasing and hire purchase) grew by 39% in June 2021 compared with the same month in 2020.

In the first half of 2021, new business was 28% higher than in the same period in 2020.

The plant and machinery finance and commercial vehicle finance sectors both reported new business up by 47% in June compared with the same month in 2020. Over the same period, the business equipment finance sector reported new business growth of 34%, while new business in the IT equipment finance sector fell by 32%.

Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The asset finance market continued to report robust broad-based growth in June, but as expected growth rates are beginning to moderate. The H1 2021 results show that new business levels have recovered strongly as restrictions to deal with the pandemic have been gradually eased.

“Our latest research suggests that the industry has maintained its optimism about the opportunities for growth despite the risks to the economic recovery from further waves of Covid-19. The FLA’s Q3 2021 industry outlook survey shows that 93% of asset finance providers expected new business growth over the next 12 months.”