Equipment Type

Confidence in Equipment Leasing Market Drops 10.5 Percent

71 percent of key executives in the $1 trillion equipment finance sector predict business conditions will stay the same for the next four months.

February 18, 2016

The Equipment Leasing and Finance Foundation released its February Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) that shows confidence in the equipment financing sector dropped from January's 54.0 index to February's 48.3.

February 2016 Survey Results:

Business conditions over the next four months:

  • 3.2 percent respondents said they believe business conditions will improve - down 10.7 percent.
  • 71.0 percent respondents believe business conditions will remain the same - down 7.6 percent.
  • 25.8 percent believe business conditions will worsen - up 15.1 percent.

Demand for leases over the next four months:

  • 3.2 percent survey respondents believe demand will increase - down 7.5 percent
  • 61.3 percent believe demand will remain the same - down 10.1 percent.
  • 35.5 percent believe demand will decline -  up 17.9 percent.

Opinion of economic conditions over the next six months:

  • 6.5 percent of the survey respondents believe that U.S. economic conditions will get better - up 3.6 percent.
  • 67.7 percent believe the U.S. economy will stay the same - down 8.7 percent.
  • 25.8 percent believe economic conditions in the U.S. will worsen - up 4.4 percent.

“A flat domestic economy, muffled by presidential election uncertainty, will subdue growth in 2016,” said Paul Menzel, president of Financial Pacific Leasing, LLC.

Source: Equipment Leasing & Finance Foundation

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