New figures released by the Finance & Leasing Association (FLA) show growth of 10% in consumer finance new business in February, compared with the same month last year.

Credit card and personal loan new business together grew by 10%, compared with February 2017, while retail store and online credit new business increased by 9% over the same period.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The latest figures reflect the recent general improvement in consumer confidence. Real earnings have begun to grow again as consumer price inflation has slowed, which has contributed to consumers feeling more confident about their own finances and spending.”

Table 1: New consumer credit lending

Feb 2018

% change on prev. year

3 months to Feb 2018

% change on prev. year

12 months to Feb 2018

% change on prev. year

Total FLA consumer finance (£m)

7,193

+10

23,010

+8

97,845

+7

Data extracts:

Retail store and online credit (£m)

626

+9

2,335

+12

9,110

+9

Credit cards & personal loans (£m)

3,865

+10

12,495

+7

48,740

+7

Second charge mortgages (£m)

81

+4

233

+5

1,032

+17

Car finance (£m)

2,333

+13

7,118

+8

34,801

+7