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In March, U.S. companies borrowed 7% less to finance equipment investments compared to a year ago, according to the Equipment Leasing and Finance Association (ELFA). Despite this decrease, companies signed up for new loans, leases, and lines of credit worth $9.3 billion, which was up 18% sequentially. ELFA President and CEO Leigh Lytle stated that equipment and software investment is expected to increase in the latter part of the year when the Federal Reserve is anticipated to begin rate cuts. Credit approvals for U.S. companies in January were at 77%, up from 76% a month earlier.
ELFA’s leasing and finance index is based on a 25-member survey that includes companies such as Bank of America, Caterpillar, Dell Technologies, Siemens AG, Canon Inc, and Volvo AB. The Equipment Leasing & Finance Foundation, ELFA’s non-profit affiliate, reported a confidence index of 52.9 for April, down from 55.2 in March. A reading above 50 indicates a positive business outlook.
