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Leasing Activity Falls in November

December 20, 2019
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New business volume among equipment financing companies fell 3 percent in November from year-earlier numbers, reports the Equipment Leasing and Finance Association. Volume was $7.8 billion.

Volume was down 23 percent from October, which recorded $10.1 billion in business. Cumulative new-business volume is up 5 percent compared to 2018.

The news came in ELFA’s recent Monthly Leasing and Finance Index (MLFI-25) report, which measures trends in U.S. capital equipment investment. The MLFI-25 measures monthly commercial equipment lease and loan activity as reported by participating ELFA member equipment finance companies representing a cross section of the equipment finance sector.

“Reflecting an overall softening in equipment and software investment during much of the year—and particularly in Q3—November’s decline in new business volume reported by MLFI respondents was not terribly surprising,” said president/CEO Ralph Petta in a prepared statement. “Uncertainty brought on by the prolonged trade frictions with China, which at the time of this writing appear to be significantly mitigated as a result of a recently announced Phase 1 trade deal between the two countries, was also partly responsible for this slowdown. Credit markets continue to perform well, with losses and delinquencies still in very acceptable ranges.”

Source: ELFA

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