Confidence in the equipment finance industry remains in October

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According to Foundation for leasing and financing of equipment‘s October 2021 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI), the overall confidence in the equipment finance market is 61.1, an increase from the September index of 60.5.

“Business volume increases as the summer months exit, portfolio performance is strong and we are optimistic for a strong Q4 2021,” said David Normandin, CLFP, President and CEO of Wintrust Specialty Finance , asked about the future prospects.

When asked to rate their trading conditions over the next four months, 25.9% of executives said they believed trading conditions would improve, up from 17.9% in September. Meanwhile, 70.4% believe that trading conditions will remain the same over the next four months, up from 71.4% the previous month, and 3.7% believe that trading conditions will deteriorate, down from 10.7 % in September.

“I don’t feel a lot of optimism for the future. The supply chain bottleneck is likely to improve, and as it does, the general economic recovery will follow, ”said James D. Jenks, CEO of Global Financing & Leasing Services.

According to the survey, 22.2% of respondents believe the demand for leases and loans to finance capital spending (capex) will increase over the next four months, up from 21.4% in September. At the same time, 74.1% believe demand will “stay the same” during the same four-month period, down from 75% the previous month, while 3.7% believe demand will decrease , compared to zero in September.

“We have seen strong new business opportunities over the past six months, so while our survey responses are ‘about the same’, it is because we have already seen the turning point, and this level of ‘Activity is, in fact, very strong, “Bruce J. Winter, president of FSG Capital, said.

The survey found that 14.8% of respondents expect increased access to capital to finance equipment acquisitions over the next four months, up from 32.1% in September. A majority (85.2%) of executives expect the “same” access to capital to finance their activities, an increase from 67.9% last month. None expect “less” access to capital, unchanged from the previous month.

When polled, 40.7% of executives said they planned to hire more employees in the next four months, up from 28.6% in September. More than half (59.3%) do not expect any change in membership in the next four months, down from 71.4% last month. None expect to hire fewer employees, unchanged from September.

Among respondents, 7.4% rated the current US economy as “excellent,” a slight increase from 7.1% last month. The majority (81.5%) of executives rated the current US economy as “fair”, down from 92.9% in September, while 11.1% rated it as “bad”, compared to zero last month.

According to the survey, 22.2% of those polled believe that US economic conditions will improve over the next six months, up from 17.9% in September, while 63% believe that the US economy “will stay the same. Over the next six months. months, down from 64.3% from last month, and 14.8% believe economic conditions in the United States will deteriorate over the next six months, down from 17.9% last month.

In October, 42.9% of those polled said they believed their company would increase spending on business development activities over the next six months, 57.1% believe there will be “no change In business development spending and none think there will be a decrease in spending, all unchanged from last month.


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