Leasing to pick up, WA left behind

Leasing of capital equipment is expected to pick up in the New Year, with three in 10 businesses intending to acquire assets in the March quarter, according to data released by hire company Alleasing.

The company said the growth was strongest in the government sector, with 39.5 per cent of government businesses planning to acquire assets in the quarter.

Businesses with turnover between $1 million and $5 million were less likely to do so, at 23 per cent.

Around one in six businesses would use leasing to increase their asset base, almost double the number in August, Alleasing said.

National leasing finance figures from the Australian Bureau of Statistics showed a 1.2 per cent increase month on month in trend terms in September, but the figures for WA were very poor.

Although not adjusted for trend, WA lease finance commitments fell 3.8 per cent in raw terms month on month, to just below $30 million for September.

That followed a spectacular dive from almost $55 million of commitments in the month of June, although data shows that commitments are often highest in the middle of the year.

The latest number was 20 per cent down on September 2013.

Alleasing chief executive Robert Spano said that the national data represented a turning point in the investment cycle.

“While the economy continues to tick along at below trend growth levels, the battle for market share is heating up,” Mr Spano said.