The Finance & Leasing Association (FLA) has reported that asset finance new business (primarily leasing and hire purchase) fell by 6% in September, compared with the same month last year.

In the third quarter of 2017, new business fell by 2% compared with the same quarter in 2016.

While new finance for business equipment grew in September by 4% compared with the same month in 2016, new finance for plant and machinery fell by 8% over the same period.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “September was a quieter month for the business car and plant and machinery finance sectors. Nevertheless, the asset finance market has returned a strong performance so far in 2017, with new business overall 6% higher than in the previous year. Over the same period, UK business investment is forecast to have grown by only 2.3%.

“Recent data revisions by the Office for National Statistics suggest that the asset finance industry’s contribution to supporting business investment is even greater than previously thought. FLA calculations show that the industry financed more than 35% of UK investment in machinery, equipment and purchased software in the 12 months to June 2017 – an eight-year high.”