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US business equipment borrowings fall 10% Y/Y in August, ELFA says

investing.com 24/09/2024 - 19:02 PM

U.S. Equipment Financing Trends in August

(Reuters) – U.S. companies borrowed 10% less to finance equipment investments in August compared to the same period last year, according to the Equipment Leasing and Finance Association (ELFA).

New loans, leases, and lines of credit secured by companies in August declined 17% from $11.1 billion the month prior.

“The Fed’s decision to begin lowering interest rates will support demand for equipment, even if some businesses wait for rates to fall further before investing,” said ELFA President and CEO Leigh Lytle.

The Washington-based trade association, which monitors economic activity in the equipment finance sector valued at over $1 trillion, noted that credit approvals for U.S. companies in August remained unchanged at 76%, the same as in July.

The ELFA’s non-profit affiliate, the Equipment Leasing & Finance Foundation, reported that its confidence index for September reached 61.9, the highest level in over two years, up from the August index of 58.4.

A reading above 50 indicates a positive business outlook. The ELFA’s leasing and finance index is derived from a survey of 25 members, including Bank of America, financing units of Caterpillar (NYSE:CAT), Dell Technologies (NYSE:DELL), Siemens AG (OTC:SIEGY), Canon Inc, and Volvo AB (OTC:VLVLY).




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