Consumer finance new business fell by 2% in May 2024 compared with the same month in 2023, figures released today by the Finance & Leasing Association (FLA) have revealed.
In the five months to May 2024, new business in this market grew by 1% compared with the same period in 2023.
The credit card and personal loans sectors together reported new business 2% lower in May compared with the same month in 2023, while the retail store and online credit sector reported a fall in new business of 7% over the same period.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The consumer finance market has reported modest growth in new business in 2024 so far despite the subdued performance in May.
“Consumer confidence overall continues to strengthen although this has yet to translate into a significant pick-up in confidence about making big-ticket purchases.
“Our latest research suggested that total UK new consumer credit by value would grow in 2024 by 4% compared with 2023, supported by better news on real earnings and the prospect of lower interest rates.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”