Equipment rental, leasing prices increase in September
Truck, trailer, RV rental and leasing prices up 1.3% YoY
Equipment rental and leasing prices increased slightly in September as the Federal Reserve’s rate cut and market momentum signal strength despite some demand, political and regulatory uncertainty due to the upcoming election and further interest rate cuts.
Rental and leasing prices for construction, mining and forestry equipment rose 0.3% year over year in September, landing at an index value of 105.5, according to Equipment Finance News’ Equipment Pricing Indexes.
Pricing Index for All Equipment Rental and Leasing
Source: Bureau of Labor Statistics
Truck, trailer and RV rental and leasing prices rose 1.3% YoY, finishing at an index value of 127.5, according to EFN’s Pricing Index for Trucks, Truck Trailers and RV Rentals and Leasing.
Pricing Index for Trucks, Truck Trailers and RV Rentals and Leasing
Source: Bureau of Labor Statistics
EFN developed the two pricing indexes for commercial equipment rental and leasing to provide indicators for industry pricing trends using data from the Bureau of Labor Statistics. The indexes, which aggregate data back to December 2008, are updated monthly.
Market outlook
The Fed cut the federal funds rate by 50 basis points last month.
While the marketplace factors, such as positive price indexes and rising core capital goods orders, indicate rental equipment activity and capital expenditures should increase, outlying demand, sustained inflationary issues limiting rate cuts and the outcome of the 2024 elections could slow the recovery into next year, according to a Wells Fargo research note today.
“Make no mistake, underlying demand conditions remain weak, and activity remains held back by uncertainty over the looming U.S. presidential election and timing/degree of Fed easing,” according to the research note.
“Our outlook beyond the current quarter has not materially changed; we continue to expect a tempered recovery once the uncertainty settles headed into early next year.”
Register here for the free webinar “Used equipment financing in 2025 as markets normalize,” taking place on Tuesday, Oct. 22, at 11 a.m. ET.
Proud Member Of
Check Out Our Industry Event
