Leasing Confidence Index Drops to Two Year Low

The May 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) dropped to 49.6, a decrease from the April index of 56.1 and the lowest number since August 2020, when it was 48..

MCI-EFI reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector.

Fewer than one in 10 respondents (6.9 percent) said they believe business conditions will improve over the next four months, down from 14.8 percent in April. Some 31 percent said conditions will worsen, an increase from 22.2 percent in April.

One in 10 (10.3 percent) said demand for leases and loans to fund capital expenditures will increase over the next four months, down from 29.6 percent in April. About one-quarter (24.1 percent) said that they believe demand will decline, up from 14.8 percent in April.

Only 3.5 percent of respondents evaluate the current U.S. economy as “excellent,” a decrease from 14.8 percent the previous month. Some 17.2 percent evaluate it as “poor,” an increase from 11.1 percent last month.

The same (3.5 percent) amount of respondents said they believe that U.S. economic conditions will get “better” over the next six months, a decrease from 7.4 percent in April. Seven in 10 (69 percent) said believe economic conditions will worsen over the next six months, an increase from 40.7 percent the previous month.

Source: Equipment Leasing & Finance Foundation