Equipment Finance Confidence Remains Strong in September

Confidence in the equipment finance industry remained high in September, according to the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI). The index posted 59.9, little changed from 60.2 in August, marking the fourth consecutive month of strong sentiment in the $1.3 trillion sector.

The survey showed 30.4% of executives expect business conditions to improve in the next four months, up from 26.9% in August. Demand for equipment leases and loans is also expected to rise, with 39.1% of respondents predicting an increase.

Access to capital improved, as 21.7% of executives anticipate greater funding availability, compared to 11.5% last month. Employment expectations softened slightly, with 36.4% planning to hire more staff, down from 42.3% in August.

On the economy, 39.1% of respondents expect conditions to improve over the next six months, up from 23.1% in August, though 30.4% believe conditions will worsen.

Daryn Lecy, COO of Oakmont Capital Services, said: “By the time this goes to print, we believe that the Fed will have reduced rates by 0.25%, which will be added incentive along with typically heavier Q4 purchases to drive demand higher by year end.”

James D. Jenks, CEO of Global Finance and Leasing Services, noted: “Many small and mid-sized businesses have yet to experience any meaningful uptick in business opportunities. There are some pockets around the country experiencing improvement, but far from being spread around widely.”