Equipment Leasing and Finance Association’s Survey of Economic Activity: Monthly Leasing and Finance Index

October New Business Volume Up 3 Percent Year-over-year, Down 8 Percent Year-to-date and Month-to-month

WASHINGTON--()--The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $1.046 trillion equipment finance sector, showed their overall new business volume for October was $7.7 billion, down 8 percent from new business volume in October 2014. Volume was down 8 percent from $8.4 billion in September. Year to date, cumulative new business volume increased 3 percent compared to 2014.

Receivables over 30 days were 1.0 percent, down from 1.1 percent the previous month and down from 1.26 percent in the same period in 2014. Charge-offs were 0.27 percent, unchanged from the previous month.

Credit approvals totaled 80.1 percent in October, down slightly from 80.5 percent in September. Total headcount for equipment finance companies was up 5 percent year over year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for November is 60.2, an increase from the previous month’s index of 58.7.

ELFA President and CEO William G. Sutton, CAE, said, “Performance in the equipment finance market was mixed in October: new business volume weakened somewhat—both in terms of the month- and year-earlier periods—while portfolio quality remained steady. Some members report a softening in the demand side of the business and it remains to be seen whether and to what extent the specter of rising interest rates will impact the sector.”

Anthony Cracchiolo, President and CEO, U.S. Bank Equipment Finance, said, “The markets continue to grow marginally year over year which is favorable. This points to a positive-leaning economy that also shows considerable inconsistency. Credit quality remains strong and at historical levels and the industry is well positioned for solid growth as the economy expands.”

About the ELFA’s MLFI-25

The MLFI-25 is the only index that reflects capex—the volume of commercial equipment financed in the U.S.—and is released as a complementary economic indicator the day before the U.S. Department of Commerce releases the durable goods report.

To read a detailed description and methodology of the MLFI-25, visit http://www.elfaonline.org/Data/MLFI/

About the ELFA

The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $1.046 trillion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its more than 575 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers. ELFA has been equipping business for success for more than 50 years. For more information, please visit www.elfaonline.org.

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Contacts

ELFA
Amy Vogt, 202-238-3438
Vice President, Communications and Marketing
avogt@elfaonline.org

Contacts

ELFA
Amy Vogt, 202-238-3438
Vice President, Communications and Marketing
avogt@elfaonline.org