Newly released survey results show improved confidence in the equipment finance sector. The August 2024 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) reached 58.4, the highest level since February 2022, the Equipment Leasing & Finance Foundation reported Wednesday. The index shows an increase from the July figure of 50.7.
According to the August survey results, 37.5% of respondents believe business conditions will improve over the next four months, a dramatic increase from just 3.9% last month. During the same time period, 45.8% of the executives expect conditions to remain the same.
Up from 11.7% in July, 41.7% of leadership believe demand for loans and leases to fund capital expenditures will increase in the next four months. In addition, 33.3% of executives believe their company will increase spending on business development in the next six months.
91.7% of the survey respondents rate the current U.S. economy as “fair,” and the remaining 8.3% evaluate it as “poor.” None of the executives rate the economy as “excellent.”
“Interest rates are expected to decrease shortly. Historically when this happens businesses tend to increase their capex spending. I believe there is pent-up demand in several sectors that are waiting for this interest rate reduction to happen. Interest rates typically impact transactional business and equipment finance is one of those industries,” says survey respondent Donna Yanuzzi, EVP of 1st Equipment Finance Inc.
The Equipment Leasing & Finance Foundation surveys key leadership in the equipment finance sector. MCI survey demographics are available on their website.
