Equipment finance market less confident

Asked about the outlook for the future, MCI-EFI survey respondent Michael Romanowski, president, Farm Credit Leasing Services Corporation, said: “Customers are continuing to work through the impacts of tax law changes and making decisions on how best to finance capital investments. Projects are beginning, and we anticipate an increase in purchase leaseback activity in the last quarter of the year.”

In assessing their business conditions over the next four months, 22.2% of executives responding said they believe business conditions will improve over the next four months, a decrease from 33.3% in April. Three-quarters (74.1%) now believe business conditions will remain the same over the next four months, an increase from 63.3% the previous month.

There has been a fall in the number of respondents who believe demand for leases and loans to fund capital expenditures will increase over the next four months. This now stands at 29.6%, a decrease from 46.7% in April. More respondents (70.4%) believe demand will “remain the same” during the same four-month time period, an increase from 50% the previous month.

There has also been a decline in the proportion of the leadership who evaluate the current US economy as “excellent,” now at 22.2% and down from 30% last month.

A quarter (25.9%) believe that US economic conditions will get “better” over the next six months, a decrease from 30% in April, and there has been an uptick in those who indicate the. economy will “stay the same” over the next six months, rising to 70.4% from 63.3% the previous month.