The Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) ticked up in December, according to the Equipment Leasing & Finance Foundation. The December number of 56.2 was up from the November index of 54.9.
According to the MCI-EFI survey, 10.3 percent of respondents expect business to improve over the next four months, down from 13.3 percent in November. About eight in 10 expect conditions to be the same, compared to 73 percent in November. One in five respondents expect more access to capital to fund equipment acquisitions over the next four months, and none expect less access.
When asked about the outlook for the future, MCI-EFI survey respondent Valerie Jester, President, Brandywine Capital Associates, Inc., said,
“We are experiencing a strong finish to the year and the fourth quarter,” said Valerie Jester, president of Brandywine Capital Associates, in a prepared statement. “Given all the distractions of the national political stage I am a bit surprised. The tariffs that were imposed earlier in the year are having their effect on certain industries, but we continue to see good investment in equipment with the predominance of our customer base. I believe many have learned to tune out the ‘noise’ and focus on the necessities to compete in today’s markets. Waiting to make certain equipment investments is just not optional if you want to stay in the game.”
Who participates in the MCI-EFI?
The respondents are comprised of a wide cross-section of industry executives, including large-ticket, middle-market and small-ticket banks, independents, and captive equipment finance companies. The MCI-EFI uses the same pool of 50 organization leaders to respond monthly to ensure the survey’s integrity. Since the same organizations provide the data from month to month, the results constitute a consistent barometer of the industry's confidence.
Source: Equipment Leasing & Finance Foundation