U.S. Companies Increase Borrowing for Equipment Investments

(Reuters) – U.S. companies borrowed 8.7% more to finance equipment investments in November compared to the same period a year earlier, according to the Equipment Leasing and Finance Association’s report on Friday.

New loans, leases, and lines of credit signed by companies in November rose to $10.36 billion, up from $9.53 billion a year ago.

The Washington-based trade association, which monitors economic activity for the over $1 trillion equipment finance sector, also reported that credit approvals for U.S. companies stood at 74% in November this year.

The Equipment Leasing & Finance Foundation, the non-profit affiliate of ELFA, indicated that its confidence index for December reached a new three-year high, suggesting executives anticipate sustained strength in lending volumes and further improvements in financial conditions.

The ELFA CapEx Finance Index of leasing and finance activity is derived from a survey of 25 members, including Bank of America, as well as the financing divisions of Caterpillar (NYSE:CAT), Dell Technologies (NYSE:DELL), Siemens AG (OTC:SIEGY), Canon, and Volvo AB (OTC:VLVLY).