Consumer credit lending figures for November 2012 show continued steady growth of six percent compared with the same period last year.
The breakdown for different types of consumer credit show reductions in the amount lent on store cards, credit cards and personal loans; and increases in instalment credit, second mortgages and particularly car finance.
Fiona Hoyle, Head of Consumer Finance at the Finance and Leasing Association (FLA) says the strongest growth it is seeing is in store instalment credit and car finance: “This suggests that consumers are taking advantage of the good finance deals currently on offer.
“The figures show just how important the sector is to consumers and the economy in general. The Government’s new regulatory system for consumer credit needs to take account of this and ensure that this market is supported and not undermined.”
UK companies are using asset finance to support more investment in the plant and machinery, vehicles and IT equipment which they need to stimulate growth, according to the FLA.
The research shows a large increase in finance for plant and machinery and, continuing a long-term trend, a significant increase in finance for IT equipment.
Finance leasing and hire purchase remain popular choices with businesses, growing by nine percent and 12 percent respectively in the eleven-month period to November 2012.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA says: “The figures show growth in finance for key asset sectors as companies invest in the tools they need to grow their businesses.
“IT equipment finance showed the highest growth in November, leading to new business growth in this market of 25 percent in the eleven-month period to November 2012.”