New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 7% in June 2022 compared with the same month in 2021. In the first half of 2022, new business was 24% higher than in the same period in 2021.
The credit card and personal loan sectors together reported new business up by 19% in June compared with the same month in 2021, while the retail store and online credit sector reported new business in June at a similar level to the same month in 2021.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The consumer finance market continued to report new business growth in June, but the rate of growth eased as the post-pandemic boost to activity waned and pressures on household incomes from higher inflation, interest rates and taxes weighed on consumer confidence and spending.
“We expect growth in new business to slow in the coming months. Our Q3 2022 industry outlook survey suggests half of consumer finance respondents expect new business growth over the next year, down from two-thirds in the Q2 2022 survey.
“As always, customers who are concerned about meeting payments should speak to their lender as soon as possible to find a solution.”
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