Decline in confidence in the equipment finance sector in October

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The Equipment Leasing & Finance Foundation today released its October 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 trillion-dollar equipment finance industry. Overall, confidence in the equipment finance market is at 45, down from September’s index of 48.7.

Asked about the outlook for the future, MCI-EFI survey respondent David Normandin, CLFP, President and CEO, Wintrust Specialty Finance, said: “I am optimistic about our industry and our clients finding solutions to manage difficult economic conditions. As the rate of change increases, I believe our industry is well positioned to adapt and continue to find ways to win.

Index results include:

• When asked to rate their business conditions over the next four months, none of the responding executives said they believe business conditions will improve over the next four months, down from 3 .6% in September. 62.5% believe trading conditions will remain the same over the next four months, up from 75% the previous month. 37.5% think business conditions will deteriorate, up from 21.4% in September.
• 8.3% of survey respondents believe demand for leases and loans to finance capital expenditures (capex) will increase over the next four months, down from 10.7% in September. 66.7% believe demand will “stay the same” over the same four-month period, down from 71.4% the previous month. 25% think demand will decline, down from 17.9% in September.
• 4.2% of respondents expect greater access to capital to finance equipment acquisitions over the next four months, compared to 14.3% in September. 87.5% of executives say they expect the “same” access to capital to fund their businesses, up from 71.4% last month. 8.3% expect “less” access to capital, compared to 14.3% the previous month.
• Surveyed, 29.2% of executives say they expect to hire more employees over the next four months, up from 28.6% in September. 66.7% expect no change in the workforce over the next four months, up from 64.3% last month. 4.2% expect to hire fewer employees, down from 7.1% in September.
• 8.3% of executives rate the current US economy as “excellent”, up from 7.1% the previous month. 66.7% of executives rate the current US economy as “fair,” up from 71.4% in September. 25% rate it as “poor”, an increase from 21.4% last month.
• None of the survey respondents believe US economic conditions will improve over the next six months, down from 7.1% in September. 41.7% say they think the US economy will “stay the same” over the next six months, up from 39.3% last month. 58.3% believe that economic conditions in the United States will deteriorate over the next six months, an increase from 53.6% the previous month.
• In October, 25% of respondents said they thought their company would increase its spending on business development activities in the next six months, up from 28.6% the previous month. 70.8% believe there will be “no change” in business development spending, up from 71.4% in September. 4.2% believe there will be a decrease in spending, an increase from none last month.






October 20, 2022


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