New business volume for leasing in the US
during April was $6.1bn (€4.8bn), representing 20% year-on-year
growth but a decline of 10% from the previous month.
The latest figures from the Equipment Leasing
and Finance Association (ELFA) show new business growth of $1bn on
the April 2011 figure of $5.1bn
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The total represents a drop of $700m in new
business compared to March this year, a month which itself saw 36%
consecutive growth and 10% growth year-on-year.
The US leasing market is experiencing steady
growth in 2012 as a whole, with year-to-date cumulative growth
remaining at 17% across March and April.
Credit approvals decreased to 76% in April
from 78% in March although 76% of companies participating in
ELFA’s Monthly Leasing and Finance Index reported submitting
more transactions for approval during April, up from 67% in the
previous month.
William Sutton, ELFA president and chief
executive, said: “April’s new business volume and credit quality
metrics appear to provide evidence that the equipment finance
sector continues to gain momentum.
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By GlobalData“Recent anecdotal information from ELFA
members gathering in Washington DC, for a series of leadership
meetings in mid-May supports the observation that the demand cycle
for capital equipment parallels the broader economy in that both
continue to strengthen, albeit slowly.”
Separately, ELFA’s research arm, the Equipment
Leasing & Finance Foundation (ELFF), reported a Monthly
Confidence Index of 59.2 for May, down slightly from
the April index of 62.1.
The decline reflects uncertainty about the
pace of US economic growth and concerns about global political and
economic factors, according to ELFF.
