The commercial vehicle finance sector saw new business leap by 140% in April compared with the same month in 2020, according to the FLA.
This compares with a rise of 58% and 43% respectively in the plant and machinery and business equipment finance sectors and an overall growth of 80% in the asset finance market in the same period.
In contrast, the IT equipment finance sector saw new business fall by 13% in April, compared to the same month in 2020.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The strong growth reported by the asset finance market in April was not unexpected given the adverse impact of the first lockdown on new business levels during the second quarter of last year.
“The latest figures show that the recovery in April was broad-based, with finance provided for investment in a wide range of vehicles, machinery and equipment. The fall in IT equipment finance new business reflected the relative strength of this sector at the start of the pandemic.
“If the industry maintains the performance we have seen in recent months, it would be on course to reach its pre-pandemic annual new business total by the end of 2021. We urge the government to recognize the importance of the asset finance market in supporting business investment and extend the super-deduction allowance for expenditure on qualifying plant and machinery to include leasing.”
