New figures released by the Finance & Leasing Association (FLA) show growth of 12% in consumer finance new business in January, compared with the same month last year.

Credit card and personal loan new business together grew by 12% compared with January 2017, while retail store and online credit new business increased by 13% over the same period.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said“The performance of the consumer finance market in January reflects a resilient household sector. Despite the squeeze on real earnings from higher inflation, consumer confidence about the outlook for their own finances and spending has held up. The labour market remains robust, with record levels of employment and a pick-up in earnings growth.”

Table 1: New consumer credit lending

Jan 2018

% change on prev. year

3 months to Jan 2018

% change on prev. year

12 months to Jan 2018

% change on prev. year

Total FLA consumer finance (£m)

8,212

+12

24,256

+6

97,176

+6

Data extracts:

Retail store and online credit (£m)

677

+13

2,802

+14

9,069

+9

Credit cards & personal loans (£m)

4,442

+12

12,897

+5

48,391

+6

Second charge mortgages (£m)

76

+8

234

+5

1,029

+16

Car finance (£m)

2,711

+13

7,471

+6

34,537

+6