Equipment Leasing and Finance Industry Confidence Remains High in February

Overall, confidence in the equipment finance market eased down in February after January reached an all-time high level for the index.

The Equipment Leasing & Finance Foundation’s Monthly Confidence Index reports a qualitative assessment of prevailing business conditions and expectations for the future for the Equipment Finance Industry.

“Our strong start to the year could be tempered with the recent volatility of the stock market and overall fears of rate increases. I believe by the end of the quarter we will have a strong picture regarding demand for the year,” said Valerie Hayes Jester, President, Brandywine Capital Associates. “At this point, indications look favorable for continued positive trends in equipment acquisition and for financing for those transactions.”

The February 2018 Survey Results:
The overall confidence in the equipment finance market is at 73.2 in February, down from 75.3 in January.

•   46.4% of executives believe business conditions will improve over the next four months, a decrease from 67.7% in January. 53.6% of respondents believe business conditions will remain the same over the next four months, an increase from 29.0% the previous month. None believe business conditions will worsen, down from 3.2% who believed so the previous month.

•   67.6% of survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, relatively unchanged from 67.7% in January. 32.1% believe demand will “remain the same” during the same four-month time period, up from 29.0% the previous month. None believe demand will decline, a decrease from 3.2% who believed so in January.

•   28.6% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, down from 35.5% in January. 67.9% of executives indicate they expect the “same” access to capital to fund business, an increase from 61.3% last month. 3.6% expect “less” access to capital, up from 3.2% last month.

•   When asked, 42.9% of the executives report they expect to hire more employees over the next four months, an increase from 41.9% in January. 53.6% expect no change in headcount over the next four months, a decrease from 54.8% last month. 3.6% expect to hire fewer employees, up from 3.2% in January.

•   25.0% of the leadership evaluate the current U.S. economy as “excellent,” down from 25.8% last month. 75.0% of the leadership evaluate the current U.S. economy as “fair,” up from 74.2% in January. None evaluate it as “poor,” unchanged from last month.

•   60.7% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, a decrease from 61.3% in January. 35.7% of survey respondents indicate they believe the U.S. economy will “stay the same” over the next six months, a decrease from 38.7% the previous month. 3.6% believe economic conditions in the U.S. will worsen over the next six months, an increase from none in January.

•   In February, 53.6% of respondents indicate they believe their company will increase spending on business development activities during the next six months, a decrease from 61.3% in January. 46.4% believe there will be “no change” in business development spending, an increase from 35.5% the previous month. None believe there will be a decrease in spending, a decrease from 3.2% last month.

Category: General Update, News