New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business grew in January 2024 by 2% compared with the same month in 2023. In the twelve months to January 2024, new business was 2% lower than in the same period in 2023.

The credit card and personal loans sectors together reported new business up in January by 5% compared with the same month in 2023, while the retail store and online credit sector reported new business 9% lower over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:

“The consumer finance market made a positive start to 2024 primarily driven by growth in the credit cards and personal loans sectors.

“In the near term, consumer spending growth is likely to remain subdued despite an improved outlook for real household disposable incomes. The UK new consumer credit market is expected to grow by 2% in 2024 to reach almost £360 billion.

“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”

Table 1: New consumer credit lending:

Source:  FLA