Equipment Leasing & Finance Foundation

Equipment Leasing Industry Confidence Remains Steady in September

The Equipment Leasing & Finance Foundation (the Foundation) released the September 2013 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $725 billion equipment finance sector. Overall, confidence in the equipment finance market is 61.3, steady with the August index of 61.0.

When asked about the outlook for the future, MCI survey respondent Russell Nelson, President, CoBank Farm Credit Leasing, said, “Stable to slightly favorable economic news, combined with rising equipment costs and interest rates, are driving a continued increase in capital expenditures within a number of industries. Current tax advantages, flexible structures and terms, used equipment values, and attractive fixed rates are contributing to another strong year for equipment financing in 2013, with potential increasing momentum into 2014.”

September 2013 survey results:

When asked to assess their business conditions over the next four months:

  • 30.3% believe business conditions will improve, down from 32.4% in August
  • 66.7% believe business conditions will remain the same, down from 67.6% in August
  • 3% believe business conditions will worsen, up from no one who believed so the previous month.
  • 33.3% believe demand for leases and loans to fund capital expenditures (capex) will increase, up from 23.5% in August
  • 63.6% believe demand will “remain the same”, down from 76.5% the previous month
  • 3% believe demand will decline, up from no one who believed so in August
  • 18.2% expect more access to capital to fund equipment acquisitions, down from 20.6% in August
  • 81.8% expect the “same” access to capital to fund business, an increase from 79.4% the previous month
  • No one expects “less” access to capital, unchanged from August
  • 36.4% expect to hire more employees, an increase from 29.4% in August
  • 60.6% expect no change in headcount, down from 64.7% last month
  • 3% expect fewer employees, down from 5.9% of respondents who expected fewer employees in August
  • 90.9% evaluates the current U.S. economy as “fair,” steady with 91.2% last month
  • 9.1% rate it as “poor,” also steady with 8.8% in August

When asked to assess conditions over the next six months:

  • 18.2% believe that U.S. economic conditions will get “better”, a decrease from 26.5% in August
  • 78.8% believe the U.S. economy will “stay the same”, an increase from 70.6% in August
  • 3% believe economic conditions in the U.S. will worsen, unchanged from last month
  • 30.3% believe their company will increase spending on business development activities, an increase from 29.4% in August
  • 66.7% believe there will be “no change” in business development spending, a decrease from 70.6% last month
  • 3% believe there will be a decrease in spending, up from no one who believed so in August