Consumer finance new business fell in June 2024 by 8% compared with the same month in 2023, figures released by the Finance & Leasing Association (FLA) revealed.
In the first half of 2024, new business in this market held steady compared with the same period in 2023.
The credit card and personal loans sectors together reported new business 8% lower in June compared with the same month in 2023, while the retail store and online credit sector reported a fall in new business of 9% over the same period.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The consumer finance market reported new business 1% lower in Q2 2024 as a whole as the impact of successive interest rate rises between 2021 and 2023 continued to weigh on demand.
“The Bank of England’s decision to cut Bank Rate in August and the return of inflation to the 2% target has improved the outlook for household spending power.
“Our latest research suggests that total UK new consumer credit by value is likely to grow in 2024 by 6% and by a further 5% in 2025.
“As always, customers who are worried about meeting payments should speak to their lender as soon as possible to find a solution.”