New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business fell in August 2023 by 7% compared with the same month in 2022. In the first eight months of 2023, new business remained 3% lower than in the same period in 2022.
The retail store and online credit sector reported a fall in new business in August of 2% compared with the same month in 2022, while the credit card and personal loan sectors together reported new business 7% lower over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The August data shows lower levels of new business across the main finance products reflecting in part the higher interest rate environment. Consumers also remain cautious about committing to major purchases despite some improvement in confidence as real earnings start to grow again.”
“FLA consumer finance providers remain positive about future growth prospects with three-quarters of respondents to the Q3 2023 Industry Outlook Survey expecting some increase in new business over the next twelve months.”
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”