Asset finance for capital machinery down in January

Posted on 11 Mar 2013

Plant and machinery asset finance in January and for the three months to January was down 3% on the previous year, while aircraft and rolling stock asset finance fell by 30% in the equivalent three-month period in 2012.

The fall in asset lending for plant and machinery, shown by figures from the Finance & Leasing Association (FLA), was only observed for January and the three months to January.

Asset finance for plant capex for full year 2012 was up 9% on the previous 12-months.

Asset finance for aircraft, ships and rolling stock was down a massive 30% in the three-months to January compared with the same period in 2011/12.

Including all asset classes, total asset finance issued grew by 5% in January 2013 compared with the same month in 2012. This was driven by the business equipment and car finance sectors that recorded new business up by 6% and 15% respectively.

Julian Rose, head of asset finance at the Finance & Leasing Association, said of the total increase overall: “After a slow December, this is a promising start to the year.

“We also hope that the Chancellor will announce, in the Budget, some new support from the Government’s Business Bank for more asset finance-based investment in the UK economy.”

The commercial vehicle and IT equipment finance sectors both reported slightly lower new business levels in January than in the same month in 2012.

 

 

Jan 2013

% change on Jan 2012

3 months to Jan 2013

% change on prev. year

12 months to Jan 2013

% change on prev. year

Total FLA asset finance (£m)

1,520

0

4,895

-11

21,429

+2

Total leasing and hire purchase excluding highvalue (£m)

1,314

+5

4,256

-4

18,158

+5

Data Extracts:
Plant and machinery finance (£m)

299

-3

969

-3

4,260

+9

Commercial vehicle finance (£m)

315

-3

1,044

-9

4,612

+3

IT equipment finance (£m)

68

-1

365

-4

1,354

+17

Business equipment finance (£m)

126

+6

426

-22

1,860

-5

Car finance (£m)

542

+15

1,566

+5

6,690

+5

Aircraft, ships and rolling stock finance (£m)

15

-1

81

-30

495

-4