Confidence in equipment leasing industry rises

The latest data from the Equipment Leasing & Finance Foundation (ELFF) suggests confidence in the performance and prospects for the equipment leasing industry is on the rise once more, following a late summer dip.

Figures from ELFF’s regular Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) put September’s confidence rating at 60.2, an increase from the August index of 58.9, suggesting the trend is moving back towards the previous high of 61.4 recorded in June and July.

The survey shows that double the number of executives (36.8%) now believe business conditions will improve over the next four months, up from 18.2% in August. Getting on for a third (30.3%) expect demand for leases and loans to fund capital expenditures will increase, up from 21.2%.

However, slightly fewer respondents say they will be hiring more employees over the next four months (30.3% compared to 33.3% in August). Double the number (6.1%) also now feel that economic conditions in the U.S. will worsen over the next six months, up from 3% who believed so last month.

Commenting on the survey’s findings, Elaine Temple, president, BancorpSouth Equipment Finance, said: “Businesses are beginning to invest in new equipment to increase capacity, not just to replace aging equipment. For the past two years the majority of purchases were replacement, not expansion. The recovery continues to be slow.”