Updated May 27, 2021
After reporting a record high 76.1 index in April, the Equipment Leasing & Finance Foundation says its May Monthly Confidence Index dropped four points to 72.1.
Noting higher vaccination rates, warmer weather and the resumption of most economic activity at pre-pandemic levels this summer, survey respondent Bruce J. Winter, president of FSG Capital commented:
Business owners are much more optimistic and stimulus supported capital spending will likely reach unprecedented levels in the next 12 months. Prolonged inflation risk is a real concern as this untested experiment in rapidly expanding government debt will reach new highs.”
The general mood of respondents seems to be stabilizing from April s euphoria. Assessing business conditions over the next four months, 54% of equipment finance company executives said they will improve, down from the 73% of respondents who indicated this in April. Another 46% say conditions will remain the same, which was up from 2
U.S. companies borrowed $9.8 billion for capital investments in April, up 19% from a year earlier, benefiting from an economic recovery triggered by mass…
An index measuring confidence in the equipment finance industry dropped to 72.1 in May from 76.1 in April, its all-time high.
The Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) is released by the Equipment Leasing & Finance Foundation as an indicator of both the prevailing business conditions and expectations for the future.
Why the time might be right for equipment financing
The COVID-19 pandemic put many businesses in a Catch-22: they may want to postpone equipment purchases to reduce expenditures and reserve cash, but at the same time, many need to upgrade to new equipment and technologies to stay efficient, productive, and competitive. Equipment financing may make it possible to get the best of both worlds and avoid large, upfront expenditures while providing your business with the equipment necessary to keep your operation running smoothly.
According to the Equipment Leasing and Financing Association, “78% of US businesses across all industries rely on financing equipment purchases through loans, leases and lines of credit.”
Monthly Equipment Finance Confidence Index at All-Time High equipmentworld.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from equipmentworld.com Daily Mail and Mail on Sunday newspapers.