New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business fell in September 2023 by 3% compared with the same month in 2022. In the nine months to September 2023, new business also remained 3% lower than in the same period in 2022.
The retail store and online credit sector reported a fall in new business in September of 1% compared with the same month in 2022, while the credit card and personal loan sectors together reported new business 5% lower over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The performance of the consumer finance market in September was in line with trends seen so far in 2023 of modest falls in the value of new business. These trends reflect the impact of the high inflation and higher interest rate environment on consumer spending which in the latest official data for Q3 2023 remained weak.
“The economic outlook is expected to remain subdued over the next year. Nevertheless, respondents to the FLA’s Q3 Industry Outlook Survey remained positive about opportunities for growth through product innovation, diversification, and leveraging technology to improve customer service.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”
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