After a slight increase in May (+ 1.9% compared to May 2016), revolving loans fell in June by -2.7% compared to June 2016. In addition, in the first half the decline is more sensitive (-0.9%).
Revolving credit, often associated with a credit card, is a sum of money made available by the lender. The borrower can use all or only part of the amount. It only reimburses the amount borrowed. The reserve will be replenished with the reimbursements.
In June alone, 817 million USD were financed through this type of consumer credit. And in the first half of the year, the production of revolving credits amounted to 4 billion USD (against 4.8 billion last year).
There are different consumer credits: assigned credits, personal loan, revolving credit and rental with option to purchase (LOA). Not all of them work in the same way and do not display the same results. Discover our guide to consumer credit to understand the difference between these different loans.
Consumer credit: slight drop in speed for the sector
More generally, the association of specialized establishments observes a weakening of the consumer credit activity with an increase of only + 2.2% against + 6.2% in the first quarter. Even deeming it “modest” (+ 0.8% vs. June 2016). “Thus, the recovery phase of the activity started two years ago is prolonged, but the growth rate slows down”, explains the ASF.
In total (all types of loans combined), the consumer credit market grew by 4.1% in the first half of 2017 with 20 billion USD of production against 19 billion USD in the first half of 2016.
Leasing with an option to purchase shows more than positive results with an increase of + 17.8% in June compared to the previous year (689 million USD). But in terms of amounts, in June, it is personal loans that produce the most with a total of 1.2 billion USD, nevertheless showing a decline of 4.6%. Don’t panic, however, since the activity of these loans has increased by + 3.3% with nearly 7 billion USD loaned in the 1st half.
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