The June 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) is 50.9, steady with the May index of 49.6, according to the Equipment Leasing & Finance Foundation. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the equipment finance sector.
When asked about the outlook for the future, MCI-EFI survey respondent Glenn Davis, President, RESIDCO, said, “Interest rates are a major concern. Uncertainties related to Fed action or inaction, as well as the continuing war in Ukraine will weigh heavily on the economy.”
When asked to assess their business conditions over the next four months, 11.1 percent of executives responding said they believe business conditions will improve over the next four months, an increase from 6.9 percent in May. One-third, 33.3 percent, said that they believe business conditions will worsen, an increase from 31 percent in May.
One in 10, 11.1 percent, of respondents said that they believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 10.3 percent in May. Two in 10, 22.2 percent, said demand will decline, down from 24.1 percent in May.
Some 7.4 percent of respondents evaluate the current U.S. economy as “excellent,” an increase from 3.5 percent the previous month. A little less than one in five, 18.5 percent, evaluate it as “poor,” an increase from 17.2 percent last month.
U.S. economic conditions will get “better” over the next six months, said 7.4 percent of the survey respondents, an increase from 3.5 percent in May. More than half, 55.6 percent, said economic conditions in the U.S. will worsen over the next six months, a decrease from 69 percent the previous month.
Source: Equipment Leasing & Finance Foundation
