Production and outstanding consumer loans are doing well. The results for the first half of the year are notably boosted by auto financing and in particular the LOA.

Production and outstanding consumer loans are doing well. The results for the first half of the year are notably boosted by auto financing and in particular the LOA.

Better production for credit companies

The indicators are green for consumer credit. This is a sign of good health from an economic point of view. For the first half of 2017, consumer loan companies saw their production rise by 6%. According to the professional association of finance companies (APSF), the French borrowed 7.7 billion euros in credit between January and June. If the increase of 6% is significant, we must remember that last year it was of the same magnitude in the first half. By contrast, at the end of the year, growth had returned to only 1.2%.

Loan companies dedicated to consumer goods, however, can welcome this increase because banks, meanwhile, show an increase of 2.9% over the same period. Banks still account for more than half of the consumer credit market (54.3%).

Consumer loans in shape in France and in the EU

Consumer loans in shape in France and in the EU

But to look more closely, the production of consumer loans does not shine as much as the numbers might suggest. Because among the production, a lever is the main factor of this stimulation: the Rental with the option of purchase. More generally, auto financing by credit grew by 7.7% and saw their outstandings rise by 20.3% to reach 23 billion euros. The LOA is definitely on the rise, like the statistics of the month of July which explodes compared to the summer of 2016 with + 35.6% according to the ASF (French association of financial companies).

France is not the only country where consumer credit is growing. At the level of the European Union, this loan is doing well. According to the figures of a French bank, outstanding loans for consumption increased by 4.4% in 2016 to reach a level of 1 195 billion euros. This result is in line with the good figures in vogue since 2014. But this is a global figure because disparities remain within the EU.