Equipment Lease Finance Industry Confidence improves in May
The Equipment Leasing & Finance Foundation has released the May 2013 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today.
Designed to collect leadership data, the Foundation says 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 56.7, an increase from the April index of 54.0, reflecting industry participants’ increasing optimism despite 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 Aylin Cankardes, president at Rockwell Financial Group, says, “With strong liquidity in the market we are seeing lending extended to middle market credits again. Lessees continue to renew leases but for shorter periods of time as they are now becoming more interested in financing capital equipment to replace existing assets.”
When asked to assess their business conditions over the next four months, 9.7 percent of executives responding believe business conditions will improve over the next four months, up from 6.3 percent in April. Nearly 90 percent (87.1) of respondents believe business conditions will remain the same over the next four months, up from 84.4 percent in April. Only 3.2 percent believe business conditions will worsen, down from 9.4 percent the previous month.