The French Association of Financial Companies revealed in January the production figures for consumer credit last November, which offset the strong upward trend of previous months. However, the use of consumer credit has continued to increase continuously since 2015.
Revolving credit down
+ 2% The growth in consumer credit production in November 2018 is weaker compared to the jump that had marked the previous month (+ 9.2%)! This month of November therefore saw a more measured progression, even more if we exclude LOA operations (+ 8%), because conventional consumer loans made almost on the spot compared to the same period in 2017 (+ 0.7%). Three realities coexist there: the consumer loan affected experienced a positive month (+ 5%), personal loan changed little (+ 0.9%) and revolving credit experienced a decline (-3.4 %).
Things are moving in automotive financing
Auto financing accounts for almost a third of consumer credit production . It is made up of conventional allocated consumer credit and LOA operations for the acquisition of a car, for the purchase of a new or used vehicle. Among these four indicators, only one fell in November and in 2018 after eleven months: the consumer credit allocated to buy a new car (-5% compared to November 2017, -0.9% since early 2018) . The most dynamic is also the lowest in volume (39 million USD in November 2018): the used LOA (+ 30.2%), which still has some way to go, however, to weigh as much as used car credit (319 mns $ in Nov 2018, + 8.7%).
LOA drives growth in 2018
The end-of-year balance sheet is near, but after eleven months, we cannot deny a strong upward trend in 2018: + 5.9% for the production of consumer credit, to approach 39 billion USD. Growth driven by the LOA (+ 16.5%, $ 7.5 billion). The year was neutral for revolving credit ($ 9.1 billion), but remained very positive for personal loans (+ 4.6%, almost $ 13 billion) and allocated credits (+ 6%, 9.5 $ bn).