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Market Data Sponsored by Market Data Asset finance new business grew by 13% in May 2023 Published: 12th July 2023 Share New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in May 2023 by 13% compared with the same month in 2022. In the five months to May 2023, new business was also 13% higher than in the same period in 2022. The business new car finance and commercial vehicle finance sectors reported new business up in May by 60% and 7% respectively, compared with the same month in 2022. The plant and machinery finance sector reported a fall in new business of 10% over the same period. Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The asset finance market reported a thirteenth consecutive month of growth in May as the trends of higher average advances across asset finance sectors and strong performances by the vehicle finance sectors continued. Lending to larger businesses was up by a third in May, and to SMEs grew by 4% in line with the previous month. “The industry is also cautiously optimistic about prospects for future growth, with the FLA’s Q2 2023 Industry Outlook Survey showing that almost three-quarters of asset finance respondents anticipate some increase in new business over the next year.” May 2023 % change on prev yr 3 mths to May 2023 % change on prev yr 12 mths to May 2023 % change on prev yr Total FLA asset finance (£m) 3,090 13 10,148 13 35,638 11 Total excluding high value (£m) 2,924 13 9,616 17 33,934 14 Data Extracts: By asset: Plant and machinery finance (£m) 621 -10 2,156 2 7,946 6 Commercial vehicle finance (£m) 794 7 2,566 10 9,237 9 IT equipment finance (£m) 69 -26 291 -46 1,343 -17 Business equipment finance (£m) 143 -20 484 -10 1,893 -5 Car finance (£m) 1,039 36 3,396 40 11,021 28 Aircraft, ships and rolling stock finance (£m) 19 20 84 29 313 1 By channel: Direct finance (£m) 1,337 23 4,306 27 15,357 23 Broker-introduced finance (£m) 693 9 2,234 14 7,933 145 Sales finance (£m) 894 3 3,077 9 10,644 4 By product: Finance leasing (£m) 227 -13 817 -10 3,373 5 Operating leasing (£m) 703 49 2,265 47 7,438 24 Lease/Hire purchase (£m) 1,691 4 5,610 8 19,770 10 Other finance (£m) 330 22 1,041 6 3,764 6 Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories Market DataUK business activity continues to rise in September Market DataConsumer car finance new business fell by 2% in August Market DataAsset finance new business fell by 7% in August