Equipment Leasing Down 17% Y/Y, 30% M/M

If equipment leasing is valued as an economic indicator, hold onto your hats.  According to the Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index, which reports economic activity from 25 companies representing a cross section of the $1 trillion equipment finance sector, overall new business volume for July was $7.0 billion, down 17 percent year-over-year from new business volume in July 2015. Volume was down 30 percent month-to-month after a spike to $10.0 billion in June.

Year to date, cumulative new business volume decreased 8 percent compared to 2015.

Receivables over 30 days were 1.3 percent, a decrease from the previous month and up from 1.01 percent in the same period in 2015. Charge-offs were 0.38 percent, down from 0.65 percent the previous month.

Credit approvals totaled 75.9 percent in July, down from 78.1 percent in June. Total headcount for equipment finance companies was up 3.3 percent year over year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for August is 54.8, an increase from the July index of 52.5.

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