Confidence in the equipment finance sector stable in January

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The Equipment Leasing & Finance Foundation (the Foundation) today released the January 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). The index reports a qualitative assessment of current business conditions and expectations for the future, as reported by top executives in the $900 billion equipment finance industry. Overall confidence in the equipment finance market is 63.9, unchanged from the December index.

Asked about the outlook for the future, MCI-EFI survey respondent Jim DeFrank, Executive Vice President and Chief Operating Officer, Isuzu Finance of America, Inc., said, “It’s all about the supply at this time. There is a demand for equipment, but manufacturers are struggling to meet the demand due to parts shortages, labor issues, etc. Once supply can match demand, we will see a nice increase in financing and leasing volumes. Hopefully by the second half of 2022.”

January 2022 highlights include:
• When asked to rate their business conditions over the next four months, 25.9% of responding executives said they believe business conditions will improve over the next four months, down from compared to 34.6% in December. 70.4% believe that business conditions will remain the same over the next four months, compared to 61.5% the previous month. 3.7% think economic conditions will deteriorate, unchanged from December.
• 25.9% of respondents believe the demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 26.9% in December. 70.4% believe demand will “stay the same” over the same four-month period, down from 73.1% the previous month. 3.7% believe that demand will decrease, whereas it was nil in December.
• 21.4% of respondents expect greater access to capital to finance equipment acquisitions over the next four months, compared to 19.2% in December. 78.6% of executives say they expect the “same” access to capital to fund their businesses, down from 80.8% last month. None expect “less” access to capital, unchanged from the previous month.
• 14.8% of executives rate the current US economy as “excellent”, down from 19.2% the previous month. 81.5% of executives rate the current US economy as “fair,” up from 76.9% in December. 3.7% rate it as “poor”, unchanged from last month.
• 29.6% of survey respondents believe that US economic conditions will improve over the next six months, up from 19.2% in December. 63% say they think the US economy will “stay the same” over the next six months, up from 61.5% last month. 7.4% believe that economic conditions in the United States will deteriorate over the next six months, down from 19.2% the previous month.






January 20, 2022


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