New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business fell in August 2024 by 1% compared with the same month in 2023. In the eight months to August 2024, new business in this market was at a similar level to the same period in 2023.
The credit card and personal loans sectors together reported new business 1% lower in August that in the same month in 2023, while the retail store and online credit sector reported a fall in new business of 6% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The consumer finance market was subdued in August and the recent recovery in consumer confidence appears to have stalled amid concerns over what the Budget at the end of October will bring.
“The FLA’s Q3 2024 Industry Outlook Survey suggested that the majority of consumer finance respondents (71%) expected some increase in new business over the next twelve months, although this was lower than in the Q2 2024 Survey.”
New consumer credit lending
| Aug 2024 | % change on prev. year | 3 months to Aug 2024 | % change on prev. year | 12 months to Aug 2024 | % change on prev. year | |
| Total FLA consumer finance (£m) | 9,029 | -1 | 28,010 | -2 | 113,013 | 0 |
| Data extracts: | ||||||
| Retail store and online credit (£m) | 608 | -6 | 1,907 | -6 | 8,413 | -6 |
| Credit cards & personal loans (£m) | 5,000 | -1 | 15,021 | -1 | 59,680 | 1 |
| Second charge mortgages (£m) | 152 | 27 | 460 | 21 | 1,569 | 8 |
| Car finance (£m) | 2,766 | -1 | 9,250 | -3 | 38,450 | -2 |
