Confidence in the equipment finance market is 67.5, up from the October index of 61.8, and the highest level since August 2021, as measured by the Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI).
The index report, published by the Equipment Leasing & Finance Foundation, produces a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $1.3 trillion equipment finance sector.
“I’m still concerned about the state of the consumer and the U.S. from a debt load perspective, but more optimistic on growth after the U.S. election cycle.” Mark Bonanno, president/COO, North Mill Equipment Finance.
When asked to assess their business conditions over the next four months, 43.3% of the executives responding said they believe business conditions will improve over the next four months, an increase from 37.9% in October. 50% believe business conditions will remain the same over the next four months, down from 51.7% the previous month. 6.7% believe business conditions will worsen, down from 10.3% in October.
Some 48.3% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 44.8% in October. 44.8% believe demand will “remain the same” during the same four-month time period, up from 41.4% the previous month. 6.9% believe demand will decline, a decrease from 13.8% in October.
