The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index showed a 12 percent increase in new-business volume in August compared to August 2015. Volume as $7.7 billion, up 10 percent from July.
The Index reports economic activity from 25 companies representing a cross section of the $1 trillion equipment finance sector. Year to date, cumulative new business volume is down 6 percent compared to 2015. Credit approvals totaled 76.9 percent in August, up from 75.9 percent in July.
Separately, the Equipment Leasing Finance Foundation’s Monthly Confidence Index (MCI-EFI) for September is 53.8, a decrease from the August index of 54.8.
“August data are mixed, with new business volume strengthening when compared both to the same period last year and last month,” said ELFA president/CEO Ralph Petta. “However, year-to-date volume still lags behind. Credit quality continues to show some softness, with charge offs and delinquencies inching upward. Taking together the Fed’s September decision to stay pat on interest rates, and the approaching presidential election, the sector continues to give no clear indication about where it's headed.”