New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business in August grew by 4% compared with the same month last year.

Credit card and personal loan new business together grew by 4% compared with August 2016, while retail store and online credit new business increased by 7%. Second charge mortgage new business increased 25% by value and 11% by volume over the same period.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The modest growth in consumer finance new business overall in August reflects subdued consumer confidence about the general economic outlook. New business grew by 6% in the first eight months of this year, which is in line  with single-digit growth expectations for UK new consumer credit in 2017 as a whole.”

Table 1: New consumer credit lending

Aug 2017

% change on prev. year

3 months to Aug2017

% change on prev. year

12 months to Aug2017

% change on prev. year

Total FLA consumer finance (£m)

7,155

+4

22,470

+8

91,582

+6

Data extracts:
Retail store and online credit (£m)

501

+7

1,589

+7

6,668

+2

Credit cards & personal loans (£m)

4,038

+4

11,997

+10

46,872

+7

Second charge mortgages (£m)

91

+25

274

+27

974

+10

Car finance (£m)

2,101

+6

7,416

+7

32,924

+7