4 February 2021
The Q1 2021 Industry Outlook Survey results released today by the Finance & Leasing Association (FLA) shows that the asset finance, consumer finance and motor finance industry see opportunities for growth over the next year despite the heightened uncertainty caused by the latest restrictions to deal with the Covid-19 pandemic.
Respondents were divided on the outlook for economic conditions, with 52% expecting some improvement over the next twelve months, while 44% expected conditions to worsen.
However, if the latest UK-wide lockdown and the vaccine rollout are successful in bringing the Covid-19 crisis under control, the majority of respondents expected growth over the next twelve months – almost 70% of respondents expected some increase in new business over that period, with 37% expecting new business to increase by 10% or more.
Commenting on the survey results, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The results of the Q1 2021 survey reflect the industry’s concerns about the adverse impact of prolonged uncertainty on businesses and households.
“But the results also point to the underlying pre-crisis strength of FLA members which has helped them weather the pandemic so far. The specialist knowledge of finance providers means the industry is in an ideal position to help drive forward Government initiatives such as levelling-up and net-zero.”
Note to editors:
- The FLA’s Q1 2021 Survey Results may be found here. The FLA’s Industry Outlook Survey gauges senior executives’ opinions across the asset finance, consumer finance and motor finance markets about the outlook for the UK economy and the markets they represent. The Q1 2021 survey results are based on results received from 79 FLA members between 16 December 2020 and 8 January 2021 and therefore captures some of the recent developments in the economy.
- In 2019, FLA members provided £140 billion of new finance to UK businesses and households. £105 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2019.
- For media enquiries, please contact the FLA press office on 020 7420 9656.