Asset finance new business (primarily leasing and hire purchase) grew by 5% in 2016, the sixth consecutive year of growth.

The Finance & Leasing Association (FLA) also revealed that new business in December 2016 fell by 13% compared with the same month in 2015.

New business in the commercial vehicle finance and business equipment finance sectors was up 7% and 16% respectively in 2016, while new finance for plant and machinery was flat over the same period.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “Despite a quiet December, asset finance new business reached £30 billion in 2016 as a whole, the highest annual total since 2008.

“Our latest industry confidence survey suggests a broadly stable outlook, with modest new business growth in 2017.”