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

August New Business Volume Up 3 Percent Year-over-year, Down 2 Percent Month-over-month and Up 3 Percent Year-to-date

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 trillion equipment finance sector, showed their overall new business volume for August was $9.2 billion, up 3 percent year-over-year from new business volume in August 2018. Volume was down 2 percent month-to-month from $9.4 billion in July. Year to date, cumulative new business volume was up 3 percent compared to 2018.

Receivables over 30 days were 2.0 percent, unchanged from the previous month and up from 1.90 percent the same period in 2018. Charge-offs were 0.42 percent, up from 0.37 percent the previous month, and up from 0.29 in the year-earlier period.

Credit approvals totaled 76.6 percent, up from 75.7 percent in July. Total headcount for equipment finance companies was down 2.1 percent year-over-year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in September is 54.7, down from the August index of 58.9.

ELFA President and CEO Ralph Petta said, “New business volume reported by member-respondents grew modestly in August, as the U.S. economy continues to perform well. A variety of economic indicators all point to a continued pattern of sustained, moderate growth in many sectors within the equipment finance industry.”

Richard E. Barry, President, Merchants Bank Equipment Finance, said, “August monthly and year-to-date new origination volume activity demonstrates a consistent increase over last year's monthly and year-to-date results. Credit quality continues to be actively monitored as month-over-month charge-offs rose slightly. The August MLFI-25 points to the continued desire of business owners to invest in efficient and productive capital equipment solutions for their enterprises.”

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 ELFA

The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $1 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 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. For more information, please visit www.elfaonline.org.

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Contacts

Media/Press Contact:
Amy Vogt, Vice President, Communications and Marketing, ELFA
202-238-3438 or avogt@elfaonline.org

Contacts

Media/Press Contact:
Amy Vogt, Vice President, Communications and Marketing, ELFA
202-238-3438 or avogt@elfaonline.org