New figures released by the Finance & Leasing Association (FLA) show growth of 1% in consumer finance new business in February 2019, compared with the same month last year.

Retail store and online credit grew in February by 6%, compared with the same month in 2018, while the personal loan and credit card finance sectors together reported a fall in new business of 4%.  Over the same period, second charge mortgage new business grew 20% by value.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The consumer finance market has seen modest growth in new business overall since November as confidence about the economic outlook has weakened.”

“We continue to expect low single-digit new business growth in 2019 as a whole if uncertainty about the outlook for the UK economy reduces.”

Table 1: New consumer credit lending

Feb 2019

% change on prev. year

3 months to Feb 2019

% change on prev. year

12 months to Feb2019

% change on prev. year

Total FLA consumer finance (£m)

7,252

+1

23,502

+2

104,327

+6

Data extracts:

Retail store and online credit (£m)

664

+6

2,372

+2

9,614

+6

Credit cards & personal loans (£m)

3,752

-4

12,462

-1

52,239

+7

Second charge mortgages (£m)

98

+20

264

+13

1,095

+6

Car finance (£m)

2,455

+6

7,577

+6

37,291

+6