New business volumes for March totalled $7bn (5bn) among the 25 equipment finance companies surveyed by the Equipment Leasing and Finance Association (ELFA) as part of its Monthly Leasing and Finance Index (MLFI-25).
According to the ELFA the companies, which represent a cross-section of the US’s $827bn equipment finance sector, saw a 3% increase in new business volumes compared to March 2013 figures, and a 30% increase on February 2014.
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Cumulatively, compared to 2013, year-to-date new business volumes increased 6%, with the total headcount for equipment finance companies also up by 4.4% this year.
William Sutton, president and chief executive officer of the ELFA, said almost all industry sectors in the US had seen their equipment finance companies perform well in the first quarter of 2014.
"The March data showing new business volume clearly provides evidence of a strong first quarter looking back and a positive forecast for future activity," he said, and added: "The Federal Reserve recently hinted at continuing a monetary policy that will promote a sustained low interest rate environment at least for the foreseeable future, which is giving the business community a reason to feel confident about the overall trajectory of the U.S. economy and make capital investments in their businesses."
His confidence is echoed by others in the industry. A separate index, the Equipment Leasing & Finance Foundation’s (ELFF) Monthly Confidence Index (MCI – EFI) for April is 65.1, remaining the highest in two years for the second consecutive month.
Brian Griffin, senior vice president of leasing at Chicago-based MB Financial Bank, said: "The continued strong metrics measured by the MLFI-25 reflect the ongoing strength of the economy and, more specifically, the leasing industry."
He added: "If medium- and long-term rates can remain relatively stable, these results bode well for continued growth for the balance of the year."
