News

Consumer credit spending rises 7% in Q2

Consumer credit spending rises 7% in Q2

Released on 13 August 2012

Consumer credit borrowing from FLA members increased by 7% in the second quarter of 2012, compared with Q2 2011, according to the latest figures from the Finance & Leasing Association, the trade body for the consumer credit industry.

Lending in the store instalment credit market remained strong, with growth of 25% compared with Q2 2011. Consumers usually use this type of credit to buy fridges, washing machines, electronics and larger items of furniture.

Second-charge mortgages, car finance, and credit card and personal loan spending also grew in Q2. The store card market showed a decrease in borrowing.

Fiona Hoyle, Head of Consumer Finance at the Finance & Leasing Association, commented:

“June delivered the sixth consecutive month of growth in the total amount of consumer credit provided by FLA members. 

“Growth in car finance and store instalment credit has been helped by the good deals currently on offer via retailers and car dealers. Consumers are taking advantage of these to spread payments into manageable monthly sums.”

Table 1: New consumer credit lending June 2012

 

June 12

% change on prev. year

Q2 2012

% change on prev. year

12 months to June 2012

% change on prev. year

Total FLA consumer finance (£m)

4,391

+2

13,681

+7

53,739

+4

Store cards (£m)

118

-13

348

-16

1,617

-10

Credit cards & personal loans (£m)

2,589

-3

8,134

+1

32,902

+1

Store instalment credit (£m)

212

+16

685

+25

2,557

-1

Second mortgages (£m)

25

-4

77

+12

303

+7

Car finance (£m)

1,330

+13

4,037

+21

15,069

+14

- ends -

Note to editors:

  1. FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and short-term credit lenders, and instalment credit providers.
  2. In 2011 FLA members provided £72.9 billion of new finance to UK businesses and households. £52.1 billion of this was in the form of consumer credit, a third of all unsecured lending in the UK.  

For further media information, please contact:

Helen Saxon, FLA

T: 020 7420 9664 E: helen.saxon@fla.org.uk M: 07918 766 993