The Finance & Leasing Association (FLA) has reported that asset finance new business (primarily leasing and hire purchase) for deals of up to £20 million fell in February by 1%, compared with the same month last year.

The plant and machinery finance and IT equipment finance sectors reported new business growth in February of 5% and 13% respectively, compared with the same month in 2017. By contrast, new business for commercial vehicles and business equipment fell by 7% and 20% respectively over the same period.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “Many asset sectors reported further growth in February despite it being a quieter month overall.

“The asset finance market continued to support key economic sectors with new finance for construction and agricultural equipment up by 13% and 9% respectively, compared with February 2017. The manufacturing sector also benefitted as new finance for production and process equipment was 47% higher over the same period.”