After four months of decline, confidence in the US equipment finance market rose in August, month-on-month, according to the Equipment Leasing & Finance Foundation.
Confidence was indexed at 67.4 by the foundation in August through its monthly confidence index for the equipment finance industry (MCI-EFI), a significant increase compared to the July’s index of 62.4.
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When asked to assess their business conditions over the next four months, 36.4% of respondents said they believed business conditions would improve over the next four months, up from 17.2% in July. The rest said business conditions would remain the same over this period.
40.9% of the executives believed demand for leases and loans to fund capital expenditures would increase over the next four months, up from 20.7% in July. No one felt demand would decline, as the rest anticipated demand to ‘remain the same’.
In addition, 36.4% of survey respondents reported that they expected to hire more employees over the next four months, a decrease from 51.7% in July. The rest expected no change in headcount over the next four months.
Valerie Hayes Jester, president at Brandywine Capital Associates said: "Demand has stayed strong through the summer. The threat of potentially increasing interest rates and projects that have been delayed for too long have been principal motivators for our customers. I feel optimism is fueled by economic conditions improving and by consumer sentiment that seems to echo that positive attitude."
The survey uses the same pool of 50 US organisation leaders to respond monthly to a set of questions.
