[ad_1]
Confidence in the equipment finance market fell in August, as measured by the Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI), to 60.5. In July, the index was 66.6.
The Equipment Leasing & Finance Foundation produces the Index, which is a qualitative assessment of both current business conditions and expectations for the future, as reported by key executives in the $ 900 billion equipment finance industry. .
What future for the financing of equipment?
When asked to rate their business conditions over the next four months, 17.9% of executives said they believed business conditions would improve in the next four months, up from 35.7% in August. Seven in 10 (71.4%) said trading terms would stay the same over the next four months, up from 64.3% the month before. About 10 percent said they believe economic conditions will deteriorate, down from zero in August.
One in five respondents (21.4%) said demand for leases and loans to fund capital spending will increase over the next four months, up from 32.1% in August. Three-quarters said demand would “stay the same” over the same four-month period, up from 67.9% the month before.
Some 7.1 percent of those polled rate the current US economy as “excellent,” down from 14.3 percent the month before. Nine in 10 (92.9%) rate the current US economy as “fair,†compared to 85.7%. None rate it as “poor”, unchanged from last month.
Some 17.9% of those polled said U.S. economic conditions will improve over the next six months, down from 32.1% in August. Just over six in ten (64.3%) said the US economy will “stay the same” over the next six months, unchanged from last month. And 17.9% believe economic conditions in the United States will worsen over the next six months, down from 3.6% the month before.
Asked about the outlook for the future, respondent Bruce J. Winter, president of FSG Capital, said, “The delta variant is causing a certain slowdown in some sectors that will delay, but not derail the recovery of these industries. Other sectors that have seen strong demand but have not been able to fill all orders due to severe labor shortages are optimistic more workers will return now that the federal unemployment premium has expired. We expect a strong fourth quarter and are optimistic that the momentum will continue into early next year. Future inflation remains the big unknown, and the outcome of the $ 3.5 trillion infrastructure bill will be a determining factor in whether we will only experience short-term inflation or several years of inflation well in the future. above the Fed’s target rate.
Source: ELFF
[ad_2]
