ELFF: Equipment finance industry confidence down
U.S. – The Equipment Leasing & Finance Foundation (ELFF) June 2014 ‘Monthly Confidence Index’ for the Equipment Finance Industry (MCI-EFI) reports confidence in the equipment finance market is 61.4, an easing from three consecutive months of two-year high levels, which topped at 65.4.
With respect to the outlook for the future, MCI survey respondent David Schaefer, CEO, Mintaka Financial, says, “Application volume, approvals, and funding are all up and are at record post-recession levels. Portfolio performance in terms of delinquency is still extraordinarily low. We are optimistic about 2014 and expect to exceed our yearly origination goals.”
Some points of the survey include:
- When asked to assess their business conditions over the next four months, 23.5 per cent of executives responding said they believe business conditions will improve over the next four months, down from 31.4 per cent in May; 70.6 per cent of respondents believe business conditions will remain the same over the next four months, up from 68.6 per cent in May; and 5.9 per cent believe business conditions will worsen, up from none who believed so the previous month.
- 17.6 per cent of survey respondents believe demand for leases and loans to fund capital expenditures will increase over the next four months, down from 34.3 per cent in May; 79.4 per cent believe demand will ‘remain the same’ during the same four-month time period, up from 65.7 per cent the previous month; 2.9 per cent believe demand will decline, up from none who believed so in May.
- 26.5 per cent of executives expect more access to capital to fund equipment acquisitions over the next four months, down from 28.6 per cent in May; 73.5 per cent of survey respondents indicate they expect the ‘same’ access to capital to fund business, an increase from 71.4 per cent in May. No one expects ‘less’ access to capital, unchanged from the previous month.
- When asked, 44 per cent of the executives reported they expect to hire more employees over the next four months, an increase from 40 per cent in May; 50 per cent expect no change in headcount over the next four months, down slightly from 51.4 per cent last month; 5.9 per cent expect fewer employees, down from 8.6 per cent who expected fewer employees in May.
- 2.9 per cent of the leadership evaluates the current U.S. economy as ‘excellent’, 91.4 per cent of the leadership evaluates the current U.S. economy as ‘fair’, and 5.7 per cent rate it as ‘poor’” all unchanged from the last two months.
To view the full ELFF report, click here.