The Finance & Leasing Association (FLA) has revealed 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 10% over the same period.

The IT equipment finance and commercial vehicle finance sectors reported new business up in July by 60% and 15% respectively, compared with the same month in 2017, while plant and machinery finance and business equipment finance saw modest growth of 1% and 4% over the same period.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance market rebounded in July despite subdued business investment as a result of Brexit-related uncertainty.

“Key sectors of the economy are using leasing and hire purchase to finance investment in equipment, with particularly strong growth in new finance provided for construction and agricultural equipment, up by 31% and 14% respectively, compared with July 2017.”