FLA sees industry confidence improving
13/08/2026
The Finance & Leasing Association (“FLA”) Q2 2026 Industry Outlook Survey shows some improvement in confidence across the finance and leasing industry, despite continued economic uncertainty.
While most respondents (61pct) said they still expected UK economic conditions to weaken over the next twelve months, this was down from 81pct in Q1 2026. At the same time, the proportion expecting conditions to improve increased from 6pct to 27pct.
FLA members provided a record £163 billion of new finance to UK businesses and households in 2025, supporting investment in machinery, equipment, vehicles and consumer spending across the economy. The Q2 survey results suggested that confidence in demand for finance remained resilient.
Almost two thirds of respondents (63pct) expected new business to increase over the coming year, broadly unchanged from Q1. Respondents cited replacement cycles, refinancing activity, and ongoing funding needs among businesses and consumers as key drivers of demand.
Concerns about customer and economic risks had eased slightly. The proportion that anticipated increases in business insolvencies fell from 87pct in Q1 2026 to 79pct in Q2 2026, while those anticipating higher personal insolvencies declined from 86pct to 78pct. Expectations of increases in the number of customers in arrears also edged down, from 67pct to 63pct. Importantly, the overwhelming majority expected only modest increases rather than any significant deterioration.
Funding conditions were expected to remain stable. Two-thirds of respondents (66pct) expected no change in funding availability, while the proportion expecting funding costs to rise fell from 78pct to 63pct.
The survey also highlighted continued investment in technology, with firms identifying AI, automation and digital customer journeys as important drivers of efficiency, customer outcomes and future growth.
Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said, "While our members remain cautious about the wider economic outlook, it is encouraging that confidence has improved since the start of the year and that they see the potential for new business growth over the next twelve months.
“The pace of investment in AI, automation and digital processes show that members are focused not just on navigating near-term challenges, but on improving productivity, customer outcomes and competitiveness over the longer term.
“The findings reinforce the important role finance providers continue to play in supporting investment, innovation and economic growth across the UK, even during periods of economic uncertainty.”
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