New figures released by the Finance & Leasing Association (FLA) show consumer finance new business in January was at a similar level to the same month in 2018.

Credit card and personal loan new business together fell in January by 3% compared with the same month in 2018, while retail store and online credit new business fell by 1%. Second charge mortgage new business increased 12% by value and 18% by volume over the same period.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The consumer finance market has seen new business growth slow in recent months, reflecting consumer concerns about the economic outlook.”

“Our latest research suggests that UK new consumer credit is likely to grow by 3.0% in 2019 as a whole, down from 5.8% in 2018

Table 1: New consumer credit lending

Jan 2019

% change on prev. year

3 months to Jan 2019

% change on prev. year

12 months to Jan2019

% change on prev. year

Total FLA consumer finance (£m)

8,311

0

24,870

+2

104,266

+7

Data extracts:

Retail store and online credit (£m)

672

-1

2,828

+1

9,576

+6

Credit cards & personal loans (£m)

4,322

-3

13,039

+1

52,377

+8

Second charge mortgages (£m)

85

+12

264

+13

1,078

+5

Car finance (£m)

2,927

+6

7,885

+5

37,143

+7