Business confidence among US finance providers has grown slightly since December, while pessimism about business prospects has more than halved, according to the Monthly Confidence Index of the Equipment Leasing and Finance Association (ELFA).
Overall, the Index confidence score for January is 54.2, up from 48.5 in December 2012. This reflects an increase in respondents who believe business conditions will improve over the next four months, from 5.9% to 6.1%; with the number who think business will worsen shrinking from 20.6% 6.1%.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The number of those questioned who said demand for capital expenditure leases and loans will increase over the next four months also rose, from 8.8% in December to 12.1% in January, with those believing it will decline over the same period falling from 32.4% to 12.1%.
When questioned, 87.9% of executives evaluated the current US economy as "fair" rather than "poor", rising from 76.5% last month. By contrast, the number of respondents who believed US economic conditions would improve over the next six months fell from 11.8% to 6.1%. The majority, 84.8%, believing economic conditions would remain static.
At 24.2%, fewer executives than in December expected to hire more employees in the next four months, but the number of respondents expecting their company to increase business development spending grew to 30.3%. Significantly, nobody thought spending would decrease.
One respondent, Valerie Hayes Jester, president of Brandywine Capital Associates, said: "We are still optimistic long term. My concerns are for the short term and the ramifications of the issues our country faces on the economic level. Demand seems to ebb and flow based upon the day’s headlines."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataGeorge Booth, managing director of Black Rock Capital, added: "The time has come to move forward, even given the continued difficult conditions. I look for small, but hopefully sustainable growth. After all, it’s January and hope springs eternal!"
