Consumer credit levels down in Q2

The Finance & Leasing Association (FLA) published its consumer finance figures today, showing that overall consumer credit lending fell by 1% in Q2 and 3% in June, compared with the same periods in 2010.

Last year, FLA members provided a third of all unsecured lending in the UK - £51.7 billion. Their figures show that certain areas of consumer financing performed better than others over the 12 months to June this year.

For example, levels of car finance lending remained steady in Q2 this year and were actually up by 1% over the 12 months to June 2011.

Elsewhere, High Street spending has affected the store credit market. It seems fewer people are taking out store instalment credit - which was down 14% in June 2011 compared with June 2010.

Looking at the same period, the amount borrowed on store cards was the same in June 2011 as it was in the previous June, although it actually fell by 22% over the 12 months to June 2011.

The FLA's Chief Economist and Head of Research, Geraldine Kilkelly commented:

"We are still waiting for significant signs of recovery in the consumer finance markets."