Consumer finance new business grew by 116% in May 2021 compared with the same month in 2020, latest data from the Finance & Leasing Association (FLA) show.
In the first five months of 2021, new business was 15% higher than in the same period in 2020.
The retail store and online credit sector reported new business up by 23% in May compared with same month in 2020, and growth of 11% in the first five months of 2021.
The credit card and personal loan sectors together reported new business up by 63% in May compared with the same month in 2020, but remained one percent lower in the first five months of 2021 than in the same period in 2020.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The significant growth rates reported in April and May reflect the impact on new business levels of restrictions to deal with Covid-19 during the first lockdown and we expect these to moderate in the coming months.
“Risks to the recovery remain from ongoing restrictions that may be needed to deal with the pandemic, the impact on confidence and unemployment once government support schemes end, and increasing inflationary pressures. Nevertheless, we currently expect the industry to return to more normal new business levels during the second half of 2021.”