Reports from the US suggest confidence in the $827bn (622bn) leasing market slipped in August, according to a stateside trade survey.
A group of 50 US market participants recorded bearish predictions on growth in response to a survey from the Equipment Leasing & Finance Foundation, falling from its confidence index of 61.4 in June and July, to 58.9 in August.
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When asked whether business conditions would improve in the next four months, 18.2% of executives agreed, down from 28.6% in July, while 78.8% of respondents believe business conditions will remain the same over the next four months, up from 68.6% in July.
21.2% of survey respondents thought demand for leases and loans to fund capital expenditures will increase over the next four months, down from 25.7% in July, while 15.2% of the Foundation’s survey participants expected more access to capital to fund equipment acquisitions over the next four months, down from 25.7% in July.
Thomas Jaschik, president at BB&T Equipment Finance, said confidence was at a tipping point and many were waiting to see what would happen in the next two months. "Will the economy accelerate, as many economists have predicted, [making] U.S. business feel confident in making capital investments, or will the economy continue its lacklustre recovery?
"The next 60 days should tell whether this will be a year of exceptional or limited growth for our industry," said Jaschik.
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By GlobalDataBy Brian Cantwell
