08/23/2024 | Press release | Distributed by Public on 08/23/2024 05:03
Washington, DC, August 23, 2024-The Equipment Leasing and Finance Association's (ELFA) Monthly Leasing and Finance Index (MLFI-25), a survey of economic activity from 25 companies representing a cross section of the $1 trillion equipment finance sector, reports that in July:
Additional findings include:
Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index in August is 58.4, up from the July index of 50.7, and the highest level in more than two years.
ELFA President and CEO Leigh Lytlesaid, "Our July MLFI report showed strength in demand amidst a slight deterioration in financial conditions. Originations grew by double digits from June, but bank activity slowed. Given that banks comprise more than half of equipment finance activity, their continued pullback and the ability of captives and independents to pick up the slack bears watching in future surveys. Credit quality deteriorated, with both receivables and losses up year over year. Overall our latest report reflects optimism from industry leaders that equipment demand should remain healthy over the second half of the year as the Fed begins to ease monetary policy."
Amrita Patel, Head of Equipment Finance, Wells Fargo, said, "The equipment finance sector continues to exhibit strength, with demand in the pipelines indicating growth appetite into 2025. Potential rate cuts in September could contribute to this uptick, particularly for equipment replacement and acquisition. While smaller firms cautiously consider labor and borrowing costs against equipment needs, larger companies are progressing through capital expenditure cycles and at times, leveraging their cash in this environment."
About ELFA's MLFI-25
The MLFI-25 is the only near-real-time index that reflects capex, or the volume of commercial equipment financed in the U.S. It is released monthly from Washington, D.C., one day before the U.S. Department of Commerce's durable goods report. This financial indicator complements reports like the Institute for Supply Management Index, providing a comprehensive view of productive assets in the U.S. economy-equipment produced, acquired and financed. The MLFI-25 consists of two years of business activity data from 25 participating companies. For more details, including methodology and participants, visit www.elfaonline.org/knowledge-hub/mlfi.
About ELFA
The Equipment Leasing and Finance Association (ELFA) represents financial services companies and manufacturers in the $1 trillion U.S. equipment finance sector. ELFA's 575 member companies provide essential financing that helps businesses acquire the equipment they need to operate and grow. Learn how equipment finance contributes to businesses' success, U.S. economic growth, manufacturing and jobs at www.elfaonline.org.
Follow ELFA:
X: @ELFAonline
LinkedIn: https://www.linkedin.com/groups/89692/
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