Association of the Wall and Ceiling Industry Logo

Equipment Finance Industry Confidence Ticks Up in June


The June 2023 Monthly Confidence Index for the Equipment Finance Industry, produced by Equipment Leasing & Finance Foundation, reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $1 trillion equipment finance sector. Overall, confidence in the equipment finance market is 44.1, an increase from the May index of 40.6.

    

When asked to assess their business conditions over the next four months, 3.3% of the executives responding said they believe business conditions will improve, an increase from none in May. Business conditions will remain the same according to 73.3%, up from 51.9% the previous month. And 23.3% believe business conditions will worsen, a decrease from 48.2% in May.

    

Of those responding, 6.7% believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, an increase from 3.6% in May. The majority, 66.7%, believe demand will remain the same during the same four-month time period, an increase from 53.6% the previous month. And 26.7% believe demand will decline, down from 42.9% in May.

    

At 6.7%, respondents expect more access to capital to fund equipment acquisitions over the next four months, down from 10.7% in May. 76.7% of executives indicate they expect the “same” access to capital to fund business, an increase from 75% last month. 16.7% expect less access to capital, up from 14.3% the previous month.

    

When asked, 13.3% of the executives report they expect to hire more employees over the next four months, a decrease from 17.9% in May. No change in headcount over the next four months say 76.7% of respondents, an increase from 67.9% last month. And 10% expect to hire fewer employees, down from 14.3% in May.

    

None of the leadership evaluate the current U.S. economy as excellent, unchanged from the previous month. The majority, 83.3% of the leadership, evaluate the current U.S. economy as fair, down from 85.7% in May. And 16.7% evaluate it as “poor,” an increase from 14.3% last month.

    

Of the survey respondents, 6.7% believe that U.S. economic conditions will get better over the next six months, an increase from 3.6% in May, and 40% indicate they believe the U.S. economy will stay the same over the next six months, an increase from 32.1% last month. The majority, 53.3%, believe economic conditions in the United States will worsen over the next six months, a decrease from 64.3% the previous month.

    

In June 30% of respondents indicated they believe their company will increase spending on business development activities during the next six months, down from 35.7% the previous month, 56.7% believe there will be no change, up from 53.6% in May, and 13.3% believe there will be a decrease in spending, up from 10.7% last month.

Browse Similar Articles

You May Also Like

The U.S. Department of Labor announced a final rule clarifying the rights of employees to authorize a representative to accompany an Occupational Safety and Health Administration compliance officer during an inspection of
New research has ranked the United States’ most populated industries and estimated what their pay could look like in 2033, in line with inflation, and the results are surprising.
AWCI's Construction Dimensions cover

Renew or Subscribe Today!