New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business fell in May by 2%, compared with the same month last year.

The retail store and online credit sector reported new business up in May by 2% compared with the same month in 2018, while credit card and personal loan new business together fell by 5%. Second charge mortgage new business grew by 23% over the same period.

Geraldine Kilkelly, Head of Research and Chief Economist, said “The consumer finance market reported a modest fall in new business of 1% in the first five months of 2019 compared with the same period in 2018.”

“We continue to expect low single-digit new business growth in 2019 as a whole, with consumer confidence about their own personal finances remaining relatively upbeat.”

Table 1: New consumer credit lending

May 2019

% change on prev. year

3 months to May 2019

% change on prev. year

12 months to May2019

% change on prev. year

Total FLA consumer finance (£m)

8,873

-2

27,824

-1

102,990

+3

Data extracts:

Retail store and online credit (£m)

722

+2

2,079

+3

8,703

+4

Credit cards & personal loans (£m)

4,521

-5

13,014

-4

51,708

+2

Second charge mortgages (£m)

108

+23

315

+22

1,152

+12

Car finance (£m)

3,154

-1

11,316

0

37,330

+4