Equipment finance confidence dips in March
Roughly 54.2% of executives expect current business conditions to remain unchanged
Confidence in the equipment finance market declined in March but remained within its recent range, according to the Equipment Leasing and Finance Association’s Monthly Confidence Index.
The index fell 9.8% month over month to 61.0 from 67.6 in February, reflecting softer sentiment among executives despite ongoing stability in underlying conditions, according to today’s Equipment Leasing and Finance Foundation (ELFA) release, with the index surveying roughly 30 executives this month. Still, confidence in the industry increased 5% YoY, and overall, sentiment reflects cautious optimism as firms balance steady portfolios with ongoing economic uncertainty.
Underlying conditions
Executives reported weakening expectations for business conditions over the next four months, as about 29.2% expect improvement, down compared to 37.5% in February, while 16.7% anticipate worsening conditions, up sharply from 4.2%, according to the release. Meanwhile, 54.2% expect conditions to remain unchanged, a decline compared to 58.3% last month.
Demand for capital expenditures also softened, with roughly 37.5% of respondents expecting increased demand, down compared to 45.8% in February, while 12.5% foresee a decline compared with none in February, according to the release. Half of the respondents expect demand to remain steady, down compared with 54.2% last month.
Access to capital showed mixed trends, as about 25% expect improved access, down compared to February’s 33.3%, while 4.2% anticipate deterioration, up from none, according to the release. Most respondents, 70.8%, see conditions holding steady, up compared to 66.7% in February.
Views on the broader economy weakened, with all respondents rating current conditions as “fair,” while expectations for improvement over the next six months dropped from February’s 33.3% to 20.8% in March, according to the release. Meanwhile, 25% expect conditions to worsen, compared to 8.3% in February.
The fourth annual Equipment Finance Connect, a crucial industry event for equipment lenders and dealers, takes place at the C. Baldwin Hotel in Houston from May 18-19. Learn more about the event and register here by April 3 for early-bird savings.
