New business volume in the equipment leasing market dropped 10% in August compared to July and 17% compared to August 2023, according to the Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25). The index represents a survey of 25 companies. Year to date, cumulative new business volume was up 3.5% compared to 2023.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index in September is 61.9, up from the August index of 58.4, and the highest level in more than two years.
“The Fed’s decision to begin lowering interest rates will support demand for equipment, even if some businesses wait for rates to fall further before investing,” said Leigh Lytle, ELFA president/CEO, in a statement. “That wait-and-see approach showed up in our August MLFI as new business volumes declined. However, ELFA members expect acquisitions to pick up once we’re past the election and interest rates fall a bit further. That sentiment was also reflected in our Foundation’s recent Monthly Confidence Index, which showed that equipment finance executives are very optimistic about their organizations’ prospects over the next four months. Finally, credit conditions remain healthy, which will allow lessors and financiers to service new demand when it shows up later this year.”
