Consumer finance new business grew by 51% in January 2022

New figures released today by the Finance & Leasing Association (FLA) show that consumer finance new business grew by 51% in January 2022 compared with the same month in 2021. In the twelve months to January 2022, new business grew by 23% compared with the same period in 2021.

The credit card and personal loan sectors together reported new business up by 55% in January compared with the same month in 2021, while the retail store and online credit sector reported new business growth of 8% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The strong performance of the consumer finance market in January in part reflects shop closures during the third UK lockdown last year. Annual new business reported by FLA consumer finance providers in January was only 2% below its pre-pandemic level.

“The economic outlook in the UK and globally has weakened following the invasion of Ukraine, with consumer price inflation in the UK expected to peak at more than 8% in the first half of this year. This, combined with higher taxes and interest rates, will hit household disposable incomes and subdue consumer spending.  Nevertheless, we continue to expect growth in FLA consumer finance sectors over the next year as members support consumers make essential purchases.”