Analysing the UK Finance & Leasing Association (FLA) Statistics - 1st Half 2024 vs. 2023

The latest statistics from the Finance & Leasing Association (FLA) reveal intriguing trends in the asset finance market for 2024. Despite a challenging economic environment, the first half of 2024 saw a 5% increase in new business compared to the same period in 2023. However, June 2024 experienced a 7% decline in new business compared to June 2023, highlighting some volatility in the market.

Overall, the asset finance market reported a 9% growth in new business in the second quarter of 2024. This growth was primarily driven by the vehicle finance sectors, which continued to show resilience despite broader economic pressures. However, not all sectors performed equally well.

The business new car finance sector saw an 11% drop in June 2024 compared to June 2023, while the commercial vehicle finance sector faced a 12% decline in the same period. Similarly, new business in plant and machinery finance fell by 12%, and the business equipment finance sector experienced the most significant drop, with a 23% decrease in new business.

Comparing these figures to 2023, FLA members provided £151 billion of new finance to UK businesses, households, and the public sector. Of this, £38 billion was allocated to asset finance for businesses, with £23 billion directed towards SMEs. The first half of 2024 showed a positive trend with a 5% increase in new business compared to the same period in 2023. However, the decline in June 2024 highlights the impact of external factors such as the anticipation of a cut in Bank Rate and fewer working days.

To put these figures into a broader context, the UK’s GDP growth rate for 2024 is projected to be around 1.2%, a slight improvement from the 0.8% growth rate in 2023. Inflation rates have also shown signs of stabilising, with the Consumer Price Index (CPI) expected to average around 3.5% in 2024, down from 4.2% in 2023. These economic indicators suggest a cautiously optimistic outlook for the UK’s economic recovery, which is reflected in the asset finance market’s performance.

The asset finance market in the UK has shown resilience in the face of economic challenges. Encouraging private sector investment remains crucial for sustained growth.

The FLA continues to play a pivotal role in supporting businesses of all sizes, financing as much as 40% of all UK investment in vehicles, machinery, and equipment.

#Finance #Leasing #AssetFinance #UKEconomy #BusinessGrowth #EconomicTrends #FLA #Investment #MarketAnalysis #BusinessFinance #EconomicRecovery #UKBusiness #FinancialServices #SMEs #VehicleFinance #MachineryFinance

Reference: 2024-0100-017