New business in the asset finance sector grew by 9% to almost £1.7 billion in January 2014, compared with the same month last year, the Finance & Leasing Association has reported.

Key asset sectors reported double digit growth with commercial vehicle finance, business equipment finance and plant and machinery finance up by 25%, 21% and 13% respectively.

IT equipment finance reported modest new business growth of 3% compared with the same month in 2013.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The positive start to 2014 follows exceptionally strong growth of more than a third in December 2013 and reflects growing confidence in the sector. ­­

“The FLA’s Asset Finance Confidence Survey for Q1 2014 showed respondents expect asset finance new business to grow by up to 10% over the next 12 months.”