Equipment Finance News
  • News
  • Event
  • Data
No Result
View All Result
  • Agriculture
  • Construction
  • Material Handling
  • Transportation
  • Vendor Operations
  • Lender Operations
Equipment Finance News
  • News
  • Event
  • Data
No Result
View All Result
Equipment Finance News
No Result
View All Result

Equipment finance industry confidence rebounds in January

Index up 260 basis points

Johnnie Martinez II by Johnnie Martinez II
May 9, 2023
in Lender Operations
Reading Time: 3 mins read
0
Share on FacebookShare on LinkedIn

Confidence among executives in the equipment finance industry continues to grow after a two-year low in November 2022, despite concerns about inflation and a possible recession. 

The Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) — an assessment of current conditions and future expectations from equipment finance sector executives — landed at 48.5 this month, an increase of 260 basis points (bps) month over month, but a decline compared with 63.8% in January 2022. 

Industry confidence is inching up after November’s low due in part to a belief that the U.S. economy will improve or remain the same in the first half of 2023, according to the index released by the Equipment Leasing & Finance Foundation. 

A growing percentage of executives is optimistic about the U.S. economy in 2023, with 7.7% of respondents believing that U.S. economic conditions will get “better” over the next six months, up from 0% in December 2022. 

Meanwhile, 57.7% responded that the U.S. economy will “stay the same” over the next six months, an increase from 48.2% last month. The remaining 34.6% believe U.S. economic conditions will worsen over the next six months, a decrease from 51.9% in December.

Equipment finance industry confidence rebounds in January
© Can Stock Photo / phototrekker

Should the U.S. economy ultimately worsen and enter a recession, not all equipment financers would be hit the same way. Aesthetic and non-essential use equipment would likely be most affected, as seen during the Great Recession, Brain Mulder, vice president of operations and program management at Raleigh, N.C.-based Fort Capital Resources, told this publication. Fort Capital Resources is an equipment and commercial finance lender with transactions up to $20 million and the capacity to service transactions in over 20 countries. 

Aesthetic equipment “got hit so hard because it was sort of just an extra money generator for companies, but it wasn’t necessarily the reason that the company was open,” Mulder said. “It wouldn’t surprise me if stuff like that starts getting hit again.” 

Cautionary optimism 

Executive confidence is increasing amid a positive economic outlook, but concerns remain. 

Most executives surveyed for the index do not expect business conditions in the equipment finance sector to change in early 2023. Looking forward at the next four months, 69.2% believe business conditions will remain the same, up from 55.6% in December. 

None of the respondents indicated that they expected business conditions to improve, down from 3.7% at the end of 2022. In contrast, only 30.8% believe business conditions will worsen, a decline compared with 40.7% in December. 

Industry slowdowns would mostly affect non-essential equipment, Fort Capital’s Mulder underlined. “As far as essential equipment goes, they still have to buy the equipment, so I haven’t seen a big change yet.” 

Tags: ELFAELFFequipment financeinflationrisk management
Previous Post

Fed: Equipment supply chain, commercial lending mixed

Next Post

Homebuilder confidence rebounds after record declines

Related Posts

Business team with world
Lender Operations

Leveraged loan market decline presents financing opportunity

June 2, 2023
Lenders tap into AgTech leasing opportunities
Lender Operations

Lenders tap into AgTech leasing opportunities

May 31, 2023
Business man hand controls computer room
Lender Operations

3 fintechs changing the equipment industry

May 30, 2023
Next Post
Homebuilder confidence rebounds after record declines

Homebuilder confidence rebounds after record declines

Check Out Our Equipment Finance Event

Stay Informed with Our News

Vendor Operations

Crane digging foundation area for new construction

Titan Machinery equipment revenue up 21% YoY

May 26, 2023
Backhoe in the sunset

Equipment industry steadfast amid economic uncertainty

May 25, 2023
An employee prepares to tear off a receipt from a payment terminal at a supermarket

Two key gauges of US economic activity diverged in first quarter

May 25, 2023
  • About Us
  • Contact Us
  • Privacy Terms
  • ADA Compliance
  • Advertise

 Manage Cookie Consent

Connect with us

© 2023 Royal MediaRoyal Media

No Result
View All Result
  • News
    • All News
    • Agriculture
    • Construction
    • Vendor Operations
    • Lender Operations
    • Material Handling
    • Transportation
  • Event

© 2023 Royal MediaRoyal Media

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
Save & Accept