Credit Usage Remains Constant – Bank Loan

Financing is used regularly in more than one in three households. This ratio remains constant for the year 2018 according to the current consumer credit index. 

 

Personal loans at previous year’s level

Personal loans at previous year

Twice a year, the consumer credit index uses the consumer loan index to determine the probable borrowings in the coming twelve months on the basis of a representative survey. 2,000 consumer households were surveyed for the current study – 200 more than in the previous year. With a value of 111, the index for 2018 provides a stable forecast overall. Below 75 points, credit usage is declining; a value of 125 and more indicates an increasing use of credit.

The survey is conducted for different consumer sectors and compiles the respective credit index. In the categories cars, furniture and kitchens, consumer electronics, large household appliances and other acquisitions, the acquisition planning and the financing planning of the respondents are determined. This will give an overview of the trend towards borrowing in the coming months.

 

Increasing prognosis is relativized

money

The slightly positive trend from the last forecast – which stood at 126 – has not solidified. Above all, the rising forecast for large household appliances from the last report in 2017/2018 has changed from 193 points to 142.

Although this is still an upward trend for refrigerators and Corporations, it is far below the forecast of the survey from mid-2017. For furniture and kitchens, the consumer credit index has dropped significantly from 141 to 85 compared to spring 2017.

Overall, consumers are planning for 2018 a bit more subdued compared to the last survey. As in the previous year, the concrete purchase intentions are lower (98 points) than the fundamental willingness to finance (113 points).

However, the changes are unlikely to result in a significant cut in overall development – consumer credit should be used to a similar extent in 2018 as in the previous year.

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