AF new business grew by 2% in May

New figures released this morning by the Finance & Leasing Association (“FLA”) show that total asset finance new business (primarily leasing and hire purchase) grew by 2pct in May 2026 compared with the same month in 2025.  In the first five months of 2026, new business was 5pct higher than in the same period in 2025. 

The business new car finance and commercial vehicle finance sectors each reported new business up in May by 7pct compared with the same month in 2025. The plant and machinery finance sector reported new business growth of 9pct over the same period.

New asset finance lending to SMEs grew in May by 7pct compared with the same month in 2025, while new lending to larger businesses fell by 6pct.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said, “The asset finance market continued to grow in May, with annual new business reaching a record £41.1 billion.

“While growth was more modest than in recent months, new business remained robust in core sectors including plant and machinery and commercial vehicle finance. SME lending also recorded a ninth consecutive month of growth, underlining the sector’s vital role in helping businesses invest, grow and improve productivity.” 

“The economic environment remains challenging. Although UK GDP returned to growth in May, recent surveys suggest business activity and confidence has softened. We expect the asset finance market to remain resilient, supported by firms’ ongoing investment needs, but growth is likely to remain measured while businesses contend with weaker demand, elevated borrowing costs and continued geopolitical uncertainty.”

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