New leasing business was up 17 percent in June compared to the same month in 2020, according to the Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25). It was up 28 percent compared to May.
The index reports on activity from 25 companies in the equipment finance sector, and those companies said new volume totalled $10.4 billion in June, up from $8.1 billion in May.
Year-to-date, cumulative new business volume was up nearly 9 percent compared to 2020, according to MLFI-25.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in July is 72.9, an increase from the June index of 71.3.
“If equipment finance new business volume at the end of Q2 is any indication, the second half of the year should be as strong as economists predict,” said ELFA president/CEO Ralph Petta in a prepared statement. “Despite slower-than-desired vaccinations in certain parts of the U.S, consumer spending is accelerating, markets remain strong and unemployment continues to slowly abate, all of which are contributing to a strong economy. This portends well for the equipment finance sector as we move into the second half of 2021. Recent pronouncements from the Fed indicate that they are eyeing recent upticks in inflation warily, but interest rates should remain low—at least in the near- to medium-term.”
Said Mark Duncan, EVP and COO of Hitachi Capital America, in a statement:
“2021 continues to bring economic tailwinds as demand continues to outpace supply. The June MLFI illustrates similar conditions at Hitachi Capital America. Our transportation and commercial finance portfolios continue to perform well, with expectations to exceed FY 20-21. Future disruptions could be attributed to supply chain and labor issues, which may take additional time to resolve.”
Source: ELFA
