April 19, 2013
The Equipment Leasing & Finance Foundation has released the April 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 54.0, an easing from the March index of 58.0, reflecting industry participants’ continuing concerns over the economy and the impact of federal policies on capital expenditures.
When asked about the outlook for the future, MCI survey respondent Ron Arrington, president at CIT Global Vendor Finance says, “The effects of sequestration, tax increases and healthcare costs are causing companies to continue to hold back on investment in capex. That said, the equipment financing market is growing, albeit modestly, largely driven by enterprise consumption focusing on equipment life cycle management and productivity gains to reduce operating expense. If the second half of this year brings greater certainty on political and economic issues, companies are poised to increase their capex spending and this should bode well for the equipment financing industry.”