Confidence dips in US equipment finance market

Confidence in the prospects for the US equipment finance market has declined for the second month in a row according to the latest data from the Equipment Leasing & Finance Foundation.

Its monthly confidence index for the equipment finance industry has eased again in April to 68.3, down from the March index of 72.2.

Survey respondent Michael Romanowski, president of Farm Credit Leasing Services Corporation, said: “We are still working through the transition with customers to the new normal of tax reform. We continue to see a lot of confusion in the marketplace.”

In the latest findings, one-third (33.3%) of executives said they believe business conditions will improve over the next four months, a decrease from 54.8% in March, while 3.3% believe business conditions will worsen, an increase from none who believed so the previous month.

Less than half (46.7%) believe demand for leases and loans to fund capital expenditures will increase over the next four months, compared to 67.7% in March.

Currently, 30% of the survey respondents believe that US economic conditions will get “better” over the next six months, a decrease from 45.2% in March. The proportion who believe economic conditions in the US will worsen over the next six months has doubled to 6.7%, from 3.2% in March.