Equipment finance industry confidence lower in July

The Equipment Leasing & Finance Foundation today released its July 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector. Overall, confidence in the equipment finance market is 46.1, a decrease from the June index of 50.9.

When asked about the outlook for the future, MCI-EFI survey respondent Adam Warner, President, Key Equipment Finance, said, “While people are likely to look with trepidation at recent federal government reactions to energy policy, inflation, and our positioning with global threats, one aspect of our economy that remains strong is the move toward implementing new technologies to help businesses increase productivity and efficiency, and best utilize the human resources they have available.”

Findings from this latest confidence index include:

•  When asked to assess their business conditions over the next four months, 3.7% of executives responding said they believe business conditions will improve over the next four months, a decrease from 11.1% in June. 63% believe business conditions will remain the same over the next four months, up from 55.6% the previous month. 33.3% believe business conditions will worsen, unchanged from June.

• 11.1% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, unchanged from June. 55.6% believe demand will “remain the same” during the same four-month time period, a decrease from 66.7% the previous month. 33.3% believe demand will decline, up from 22.2% in June.

• 11.1% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, down from 22.2% in June. 81.5% of executives indicate they expect the “same” access to capital to fund business, an increase from 77.8% last month. 7.4% expect “less” access to capital, up from none the previous month.

• 11.1% of the leadership evaluate the current U.S. economy as “excellent,” an increase from 7.4% the previous month. 77.8% of the leadership evaluate the current U.S. economy as “fair,” up from 74.1% in June. 11.1% evaluate it as “poor,” a decrease from 18.5% last month.

•   7.4% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, unchanged from June. 40.7% indicate they believe the U.S. economy will “stay the same” over the next six months, an increase from 37% last month. 51.9% believe economic conditions in the U.S. will worsen over the next six months, a decrease from 55.6% the previous month.