You are here: Home - Credit Cards & Loans - News -

Consumer credit holds firm in August

Written by:
Consumer credit figures held stable in August, with falls in the consumer new car finance market offsetting strength in credit card and personal loan business.

Consumer credit has been an area of focus for the Bank of England, describing it as a ‘pocket of risk’ in a statement from the Financial Policy Committee. The strength of consumer credit has contributed to increasing calls for an interest rate rise.

Figures from the Finance & Leasing Association (FLA) show that new business volumes in the point of sale (POS) consumer new car finance market fell by 8% in August, compared with the same month in 2016, while the value of new business was up by 2% over the same period.

New car sales are often taken as a bellwether for the UK economy. Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The August figures reported by the POS consumer new car finance market are in line with wider trends in private new car sales. These trends are not unexpected given the strength of the market in recent years and subdued consumer confidence about the general economic outlook.”

In contrast, credit card and personal loan new business together grew by 4% compared with August 2016, while retail store and online credit new business increased by 7%. Second charge mortgage new business increased 25% by value and 11% by volume over the same period.

Kilkelly added: “The modest growth in consumer finance new business overall in August reflects subdued consumer confidence about the general economic outlook. New business grew by 6% in the first eight months of this year, which is in line with single-digit growth expectations for UK new consumer credit in 2017 as a whole.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Probate Service now accepts online applications

The Probate Service is now accepting online applications, providing applicants fulfil certain criteria.