Consumer finance grew by 2% in August

New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew in August 2025 by 2% compared with the same month in 2024.  In the eight months to August 2025, new business in this market was 4% higher than in the same period in 2024.

The credit card and personal loans sectors together reported new business in August 3% higher than in the same month in 2024, while the retail store and online credit sector reported that new business fell by 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 has grown in each month so far in 2025, with the value of new business up across most finance products.

“Uncertainty about what the Autumn Budget will bring for households has contributed to a downturn in consumer confidence.  The FLA’s Q3 2025 Industry Outlook Survey suggested that almost half of consumer finance respondents expected consumer spending to decrease over the next year.  However, with a strong track record of supporting households during challenging economic times, the majority of respondents anticipated some increase in new business over the next 12 months.”

 New consumer credit lending

	Aug 2025	% change on prev. year	3 months to Aug2025	% change on prev. year	12 months to Aug 2025	% change on prev. year
Total FLA consumer finance (£m)	9,303	2	29,868	5	119,456	5
Data extracts:
Retail store and online credit (£m)	640	-6	2,057	-4	9,204	-3
Credit cards & personal loans (£m)	5,182	3	15,997	6	62,742	5
Second charge mortgages (£m)	176	16	554	20	1,937	23
Car finance (£m)	2,731	-1	9,608	4	40,104	5