The June 2020 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) jumped to 45.8, up from May’s index of 25.8. The index, from the Equipment Leasing and Finance Foundation, is a qualitative assessment of prevailing business conditions and expectations, it says.
“Despite the reduction in overall demand, the market size still remains extensive,” said respondent Daniel Krajewksi, president/CEO of Sertant Capital, in a prepared statement. “We continue to find opportunity and have seen an uptick in application activity. We do have continued concern over the political environment and the divide that continues to exist in Washington.”
According to the Foundation’s monthly Covid-19 impact survey, 92 percent of respondents have offered payment deferrals, and 82 percent expect their default rate to be greater this year than last.
When asked in the MCI-EFI to assess their business conditions over the next four months, 37 percent responded that they believe business conditions will improve over the next four months, up from 3.3 percent in May. Some 44.4 percent said they believe business conditions will worsen, a decrease from 86.7% in May.
About one in five of respondents expect demand for leases and loans to fund capital expenditures will increase over the next four months, up from 6.7 percent in May. About one-third expect demand will decline, a decrease from 86.7 percent in May.
None of the respondents evaluated the current U.S. economy as “excellent,” unchanged from the previous month. About three-quarters evaluated it as “poor,” down from 90 percent last month.
Slightly more than half expect that U.S. economic conditions will be “better” over the next six months, an increase from 20 percent in May, and 18.5 percent expect economic conditions will worsen over the next six months, down from 50 percent.
Source: Equipment Leasing & Finance Foundation