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Equipment Leasing and Finance Industry Confidence Improves Again in April

Company News: ELFA


April 26, 2016 - The Equipment Leasing & Finance Foundation released the April 2016 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) last week. Overall, confidence in the equipment finance market increased for the second consecutive month to 59.1, an increase from the March index of 51.6.

 

Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $1 trillion equipment finance sector.

 

When asked to assess their business conditions over the next four months, 12.1% of executives said they believe business conditions will improve over the next four months, an increase from 3.2% in March. And, 75.8% of respondents believe business conditions will remain the same over the next four months, a decrease from 77.4% in March. Some 12.1% believe business conditions will worsen, a decrease from 19.4% the previous month.

 

It was noted that 15.2% of survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, an increase from 9.7% in March. Some 66.7% believe demand will “remain the same” during the same four-month time period, down from 74.2% the previous month, while 18.2% believe demand will decline, an increase from 16.1% who believed so in March.

 

Some 24.2% of executives expect more access to capital to fund equipment acquisitions over the next four months, increase from 16.1% in March. A total of 75.8% of survey respondents indicate they expect the “same” access to capital to fund business, a decrease from 77.4% the previous month.  None expect “less” access to capital, a decrease from 6.5% last month.

 

When asked, 51.5% of the executives report they expect to hire more employees over the next four months, an increase from 32.3% in March.  Some 45.5% expect no change in headcount over the next four months, a decrease from 61.3% last month, and 3.0% expect to hire fewer employees, a decrease from 6.5% in March.

 

Evaluating the current U.S. economy, 3.0% of the leadership responded with “excellent,” an increase from none last month.  Some 97% of the leadership evaluate the current U.S. economy as “fair,” down from 100% in March, and none rate it as “poor,” unchanged from the previous month.

 

When asked, 3% of respondents believe that U.S. economic conditions will get “better” over the next six months, an increase from none who believed so in March, while  87.9% of survey respondents indicate they believe the U.S. economy will “stay the same” over the next six months, an increase from 77.4% the previous month. Some 9.1% believe economic conditions in the U.S. will worsen over the next six months, a decrease from 22.6% who believed so last month.

 

In April, 54.5% of respondents indicate they believe their company will increase spending on business development activities during the next six months, an increase from 38.7% in March. Some 45.5% believe there will be “no change” in business development spending, a decrease from 48.4% the previous month, and none believe there will be a decrease in spending, a decrease from 12.9% who believed so last month. 

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