CashNews.co
The latest Acquis Index has reported a 14% drop in the value of new equipment finance deals in the UK during the first half of 2024 compared to the same period in 2023.
The Index, now in its fourth year, tracks new lease originations across various UK industry sectors, including restaurants, retail, industrial, office, and IT equipment.
The report highlights that lease inceptions for the first half of 2024 lagged behind both 2022 and 2023. June saw a significant 30% decline in new equipment finance deals, while July marked the first month in six to show an upward trend, potentially signalling better performance in the second half of the year.
Among the sectors, industrial equipment stood out as the only area showing growth, with an 8.2% increase in new deal values compared to 2023. Office equipmenthowever, experienced the largest decline, with values dropping by 20% in the first half of 2024.
The Acquis Index findings align with recent data from the Finance & Leasing Association (FLA), which reported a 7% decline in total asset finance new business, including leasing and hire purchase, for the same period. Sectors such as machinery finance and business equipment finance saw steeper declines of 12% and 23%, respectively.
UK asset finance new business logs 9% growth in July 2024
Commenting on the Index, James Rudolf, Chief Commercial Officer at Acquis, noted that “the first half of 2024 has unfortunately not delivered the return to growth in equipment finance we were all hoping for.”
He attributed the downturn to factors such as political and economic uncertainty, alongside the threat of recession. However, Rudolf expressed hope that the recent drop in interest rates and the Autumn Budget could help spur business investment later in the year.
“UK equipment finance market sees 14% decline in H1 2024: Acquis Index” was originally created and published by Leasing Life, a GlobalData owned brand.
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