Informations Rapides · 7 January 2022 · n° 5

Leasing declines sharply in 2020 Annual financial lease survey - year 2020

In 2020, new investments financed by leasing and by lease with purchase option (LOA) fell by 10.0% over one year (−3.7 billion €). They are thus down to 33.4 billion euros (€ bn), or 1.45% of gross domestic product (GDP), or 6.3% of total gross fixed capital formation for the national economy.

The decline in activity results mainly from a contraction in equipment leasing (−1.8 billion, i.e. −10,1% and −5.0 percentage points in relation to the change in the total), and to a lesser extent from the LOA (rental with purchase option) from individuals (−1.3 billion, i.e. −3.4 percentage points to the change in the total) and from real estate leasing (−1.0 billion, i.e. −2,8 percentage points to the change in the total). On the other hand, the amount of LOA with companies increased (+0.5 billion, or +1.2 percentage points to the change in the total).

Automotive products and machinery and equipment represent more than three-quarters of investments in equipment leasing (41.7% and 35.2% respectively). Investment in automobiles, which fell by 17.7%, was the main factor behind the decline in investment in equipment leasing. Investment in machinery and equipment fell 7.8%. In contrast, investment in computer, electronic and optical products resisted the crisis better, with a smaller decrease of 4.5%.

Demand for leasing has fallen sharply in transport and warehousing (−18.2%) and wholesale and retail trade and repair of automobiles and motorcycles (−13.6%). These two sectors, which account for 30.5% of investment in equipment leasing, also account for more than half of the decline in investment in that category. Investment in leasing stagnated in the construction sector (−0.1%) while it rose 6.8% in agriculture, forestry and fishing.

In 2020, developments in real estate leasing are very contrasted depending on the type of investment: land purchases and new construction and civil engineering contracts plunged resp. by 35.3% and 30.3%, while building acquisition rose by 8.0%. The purposes of the financing are just as contrasted: the financing of offices by leasing fell sharply (−35.9%), whereas that of factories decreased more moderately (−14.7%).

Companies in the real estate sector carry out almost half of real estate leasing. Their investment fell by 15.9% (compared to 21.4% for all sectors). Among the other major customer sectors, real estate leasing fell by 38.5% in specialized, scientific and technical activities, by 1.7% in wholesale and retail trade and repair of motor vehicles and motorcycles, and rose by 5.5% in the production and distribution of electricity and gas.

In 2020, the amount of LOA contracts with companies increased (+0.5 billion €, i.e. +12.1% compared to 2019). The largest increase is in the health sector (+58.0%) which now represents 17% of total LOA investment. LOA investment also increased in wholesale and retail trade and repair of motor vehicles and motorcycles (+29.8%), construction (+8.9%) and professional, scientific and technical activities (+8.2%). On the other hand, it fell in financial and insurance activities (−11.5%)