New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew in December 2018 by 4% compared with the same month in 2017, and by 5% in Q4 2018 as a whole.

Credit card and personal loan new business together grew in December by 5% compared with the same month in 2017, while retail store and online credit new business held steady. Second charge mortgage new business increased 6% by value and 13% 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 slowed in the final quarter of 2018 as continued uncertainty about the economic outlook hit consumer confidence.”

“2019 is likely to see modest single-digit growth in new consumer credit overall.”

Table 1: New consumer credit lending

Dec 2018

% change on prev. year

3 months to Dec 2018

% change on prev. year

12 months to Dec2018

% change on prev. year

Total FLA consumer finance (£m)

7,939

+4

25,542

+5

104,219

+8

Data extracts:

Retail store and online credit (£m)

1,036

0

3,083

+5

9,582

+7

Credit cards & personal loans (£m)

4,388

+5

13,233

+5

52,520

+9

Second charge mortgages (£m)

80

+6

283

+16

1,069

+4

Car finance (£m)

2,195

+4

8,032

+6

36,955

+7

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