New figures released by the Finance & Leasing Association (FLA) show that consumer finance new business fell by 4% in March 2023 compared with the same month in 2022. In Q1 2023, new business was 2% lower than in Q1 2022.

The retail store and online credit sector reported new business up by 5% in March compared with the same month in 2022, while the credit card and personal loan sectors together reported a fall in new business of 3% over the same period.

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

“Our latest figures suggest that both the consumer finance market and households have remained resilient despite the challenges posed by high inflation, and higher interest rates and taxes.

“CPI inflation is expected to fall significantly in the coming months, but further rises in Bank Rate are likely while concerns over domestic price pressures persist. We therefore expect households to remain cautious when it comes to discretionary spending, and the consumer credit market to hold steady in 2023 as a whole.

“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