Equipment lease & finance industry gains confidence in June
The Equipment Leasing & Finance Foundation released its June 2013 Monthly Confidence Index for the Equipment Finance Industry Wednesday, showing growth in confidence of the equipment finance market.
The Index landed at 57.3 in June, an increase from May’s 56.7, reflecting industry participants’ increasing optimism despite continued moderate growth of business investment in equipment.
“Demand for equipment leases has increased significantly over the last 60 days,” Thomas Jaschik, President, BB&T Equipment Finance said. “Whether this is a seasonal factor or an indicator of an improving economy is subject to debate. If demand continues throughout the summer than perhaps we can give the nod to an improving economy.”
Almost 20 percent of respondents said they expect more access to capital, and to fund equipment acquisitions over the next four months, down from 25.8 percent in May.
“Numerous industry segments experiencing modest to robust sales growth and replenished cash reserves during the past 18 months are moving forward with capex plans, contributing to strong performance for the equipment finance industry during the remainder of 2013 and into 2014,” Russell Nelson, President of CoBank Farm Credit Leasing, says.
The majority – 80.6 percent – of survey respondents indicate they expect the “same” access to capital to fund business, an increase from 74.2 percent the previous month. None expects “less” access to capital, unchanged from May.
Another 29 percent of the executives reported they expect to hire more employees over the next four months, an increase from 19.4 percent in May.
In June, 25.8 percent of respondents indicate they believe their company will increase spending on business development activities during the next six months, unchanged from May. Another 74.2 percent believe there will be “no change” in business development spending, and no one believes there will be a decrease in spending, both also unchanged from May.