Consumer credit: cold spell on production in November 2019

The growth in consumer credit production in 2019 was slightly dampened last November according to figures from the French Association of Financial Companies: -2.4% compared to the same period the year previous. However, the combination of the first eleven months of 2019 augurs well for a year of growth.

Revolving credit is recovering

Revolving credit is recovering

One working day less, this is undoubtedly the reason for this decline in the production of consumer loans in November 2019 (-2.4%). Over the last three months, the trend remains positive (+ 1.2%), as well as for the cumulative period from January to November (+ 1.4%). The decline recorded is concentrated in conventional consumer credit operations (-3%), around affected loans (-5.6%) than personal loans (-6.7%). Auto loans in new cars continue to plummet (-8.4%), but their equivalent for used vehicles has suffered the same fate (-6.7%). On the other hand, revolving credit confirmed its resumption of form (+ 4.5%).

Used vehicle financing is performing

Used vehicle financing is performing

Rental operations with purchase option held up better in November (+ 0.3%), thanks to the used LOA (+ 22.4%) which offset the slight drop in the new LOA (-1.5%) ). Nevertheless, car financing declined over the month in both new (-3%) and second-hand (-3.5%). In cumulative from January to November 2019, the downturn is consistent for the new (-0.6%) unlike the occasion, whose dynamics are close to double-digit growth (+ 9.6%) in the wake of a booming LOA opportunity (+ 39.4%). In terms of volume, it is however important to remember that financing for new buildings represents almost two thirds of the sums borrowed, and that the LOA covers three quarters of the amounts in new buildings, against less than 13% on occasion.

Personal loans in decline

Personal loans in decline

The growth in conventional consumer loans fell below 1% from January to November 2019 (+ 0.9%), mainly due to the drop in personal loans (-2.4%) which represent more than a third of the sums granted ($ 12.7 billion). The works credit will exceed 3 billion USD in the December statement and show an increase of 13.7% over eleven months!

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