Latest figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew in June 2023 by 1% compared with the same month in 2022. In the first half of 2023, new business was 3% lower than in in the same period in 2022.
The retail store and online credit sector reported new business up in June by 3% compared with the same month in 2022, while the credit card and personal loan sectors together reported a fall in new business of 1% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “In June, FLA consumer finance providers reported the first monthly increase in total new business since January of this year. The overall performance was boosted by a return to growth in the consumer new car finance and second charge mortgage markets, and further growth in the retail store and online credit sector.”
“FLA consumer finance markets have proved resilient despite tougher economic conditions with new business down only 3% in the first half of 2023. As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”