The May 2013 Monthly Confidence Index for the Equipment Finance Industry rose to 56.7 from 54 in April, according to the Equipment Leasing and Finance Association (ELFA). These results indicate optimism among respondents despite economic concerns and the impact of federal policies on capital expenditures, ELFA said.
“With strong liquidity in the market we are seeing lending extended to middle market credits again. Lessees continue to renew leases but for shorter periods of time as they are now becoming more interested in financing capital equipment to replace existing assets,” said survey respondent Aylin Cankardes, president of Rockwell Financial Group.
The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $725 billion equipment finance sector.
- 9.7 percent said they believe business conditions will improve over the next four months, up from 6.3 percent in April.
- 12.9 percent believe demand for leases and loans to fund capital expenditures will increase over the next four months, remaining relatively unchanged from 12.5 percent in April.
- 25.8 percent expect more access to capital to fund equipment acquisitions over the next four months, up from 18.8 percent in April.
- 19.4 percent expect to hire more employees over the next four months, down from 25 percent in April.
- 90.3 percent evaluate the current U.S. economy as “fair,” up from 87.5 percent in April.
- 32.3 percent believe that U.S. economic conditions will get “better”over the next six months, up from 15.6 percent in April.