Construction equipment

Confidence in the equipment finance market rises slightly

25 October 2021

The Equipment Leasing & Finance Foundation released its October 2021 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI), concluding that confidence in the equipment finance market is valued at 61.1 , an increase from the September index of 60.5.

The index presents 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.

Asked about the outlook for the future, MCI-EFI survey respondent David Normandin, CLFP, President and CEO of Wintrust Specialty Finance, said: for a strong Q4 2021.

October 2021 survey results

  • When asked to rate their business conditions over the next four months, 25.9% of executives surveyed said they believed business conditions would improve in the next four months, up from 17.9%. % in September. 70.4% believe trading conditions will stay the same over the next four months, up from 71.4% the month before. 3.7% believe that the economic situation will deteriorate, against 10.7% in September.
  • 22.2% of respondents believe demand for leases and loans to finance capital spending (capex) will increase over the next four months, up from 21.4% in September. 74.1% believe demand will “stay the same” over the same four-month period, down from 75% the month before. 3.7% believe that demand will decline, compared to zero in September.
  • 14.8% of respondents expect increased access to capital to finance equipment acquisitions over the next four months, up from 32.1% in September. 85.2 percent of executives say they expect the “same” access to capital to fund their operations, up from 67.9 percent last month. None expect “less” access to capital, unchanged from the previous month.
  • When asked, 40.7 percent of executives say they expect to hire more employees in the next four months, up from 28.6 percent in September. 59.3% do not expect any change in headcount in the next four months, down from 71.4% last month. None expect to hire fewer employees, unchanged from September.
  • 7.4% of executives rate the current US economy as “excellent,” a slight increase from 7.1% the previous month. 81.5% of executives believe the current US economy is “fair,” down from 92.9% in September. 11.1% rate it as “mediocre”, compared to none last month.
  • 22.2 percent of those polled believe U.S. economic conditions will improve over the next six months, up from 17.9 percent in September. 63 percent say they think the US economy “will stay the same” over the next six months, down from 64.3 percent last month. 14.8% believe economic conditions in the United States will worsen over the next six months, up from 17.9% the month before.
  • In October, 42.9% of respondents indicate that they believe their company will increase spending on business development activities over the next six months, 57.1% believe there will be “no change In business development spending, and none think there will be a decrease in spending. , all unchanged from last month.

Source: Foundation for Equipment Leasing and Financing


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