Finance Confidence Jumps in January: ELFF

Jan. 23, 2024
20% expect conditions to improve over the next four months, up from 4%.

Confidence jumped in the equipment leasing and finance industry this month, according to the Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). The index is 48.6, an increase from the December index of 42.5, according to the Equipment Leasing & Finance Foundation.

“We still see demand for light and medium-duty trucks to satisfy ever-growing e-commerce business,” said Jim DeFrank, EVP/COO, Isuzu Finance of America, in a statement. “We also see thousands of light and medium-duty trucks waiting for bodies to be upfitted. When the body companies catch up with chassis awaiting upfitting, we will see a lot of opportunities for equipment finance companies in this sector over the next three to six months.”

Read also: 2024 Prices Remain a Concern for Fleets

One in five respondents (20.7%) said that they believe business conditions will improve over the next four months, an increase from 3.7% in December. The percentage expecting conditions to worsen dropped to 17.2% from 29.6% in December.

Some 13.8% said that they believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 3.7% in December. One in five (20.7%) expect demand to decline, a decrease from 22.2% in December.

None of the respondents evaluated the current U.S. economy as “excellent,” unchanged from the previous month, but 93.1% of the leadership evaluate the current U.S. economy as “fair,” up from 85.2% in December.

Some 13.8% expect that U.S. economic conditions will get “better” over the next six months, up from 3.7% in December. The percentage expecting conditions to worsen dropped to 20.7% from 29.6% the previous month.

About the Author

Rod Sutton

I have served as the editorial lead of Construction Equipment magazine and since 2001. 

Our mission is to help managers of heavy equipment and trucks to improve their performance in acquiring and managing their fleets. One way we do that is with our Executive Institute, where experts share information and ideas that will enable equipment managers to accurately manage equipment costs so that they can deliver the optimum financial benefits to their organizations.

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