Leasing Confidence Index Bumps Up in July

Confidence in the equipment finance market jumped up to 50.7 in July, compared to the June index of 50.2, as measured by the Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). The index, produced by the Equipment Leasing & Finance Foundation, measures prevailing business conditions and future expectations in the equipment finance sector.

“Companies are falling behind on capex, but the need for replacement is necessary, despite rising costs and increased financing expenses," said respondent Lyndon Thompson, president, Byline Financial Group, in a statement. "Upgrades are essential for growth and to stay competitive, though it’s unlikely costs will decrease in the foreseeable future.”

About 3.9% of the executives responding said they believe business conditions will improve over the next four months, down from 11.5% in June. Over half (76.9%) believe business conditions will remain the same over the next four months, unchanged from May.

None of the leadership evaluate the current U.S. economy as “excellent,” down from 3.9% the previous month. Some 84.6% of the leadership evaluate the current U.S. economy as “fair,” up from 76.9% in June. Less than a quarter (15.4%) evaluate it as “poor,” down from 19.2% last month.