News

Posted On: 12/06/2011

Equipment finance industry confidence improves in November

Equipment Leasing & Finance Foundation

The Equipment Leasing & Finance Foundation releases the November 2011 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). 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 $628 billion equipment finance sector.Overall, confidence in the equipment finance market is 57.4, up from the October index of 50.7, indicating an increase in optimism about business activity despite ongoing concerns about the global economic situation.

When asked to assess their business conditions over the next four months, 18.9% of executives responding said they believe business conditions will improve over the next four months, up from 9.8% in October. 75.7% of respondents believe business conditions will remain the same over the next four months, a decrease from 80.5% in October. 2.0% of executives believe business conditions will worsen, a decrease from 9.8% in October.

24.3% of survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, an increase from 17.1% in October. 70.3% believe demand will “remain the same” during the same four-month time period, up from 68.3% the previous month. 5.4% believe demand will decline, down from 14.6% who believed so in October.

27.0% of executives expect more access to capital to fund equipment acquisitions over the next four months, up from 12.2% in October. 73.0% of survey respondents indicate they expect the “same” access to capital to fund business, a decrease from 87.8% the previous month. No survey respondents expect “less” access to capital, unchanged from October.

 

Learn more about the November 2011 Monthly Confidence Index for the Equipment Finance Industry