The US Equipment Leasing and Finance Foundation’s monthly confidence index for the equipment finance industry for September 2014 saw confidence rise to 60.2% from the 58.9% recorded in August.
The index, which features the views of 50 leaders from asset finance companies, found that 36.4% of executives believed business condition would improve over the next four months, up from 18.2% in August. In both August and September the number of respondents who felt conditions would worsen remained flat at 3%, meaning those who felt it would stay the same fell from 78.8% in August to 60.6% in September.
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The number who predicted a rise in demand for leases and loans in the next four months also increased in September, from 21.2% to 30.3%. Again 3% said it would decline in both August and September, while those who said it would say the same declined from 75.8% in August to 66.7% in September.
When asked if they felt access to capital to fund equipment acquisitions over the next four months, 15.2% said it would increase, 84.8% said it would stay the same, and none expects it to fall in September. All these were the same as in August.
The number of employers expecting to hire more employees over the next four months fell from 33.3% in August to 30.3%, while 60.6% said they expected no change in headcount, compared to 57.6% in August.
In September, 15.2% of respondents indicated they felt their company would increase business development activity spending over the next six months, down from 21.2% in August, while those expecting no change increased from 78.8% in August to 84.8%. In both months, no one expected a decrease in spending.
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By GlobalDataOne of the respondents, Paul Menzel, president and chief executive officer of Financial Pacific Leasing, said; "While the consumer and commercial sectors are still suffering a hangover from the great recession, even after five years, the aversion to debt will slowly succumb to the need to upgrade and replace equipment."
