Overall new business in the equipment finance sector was up 9.5% in June to $8 billion, from a volume of $7.3 billion in the same period in 2011, according to the Equipment Leasing and Finance Association’s(ELFA) Monthly Leasing and Finance Index (MLFI-25). The organization reports economic activity for the $628 billion equipment finance sector.
Volume was up 29% from the previous month, the report noted. Year-to-date cumulative new business volume increased 14.5%.
Total headcount for equipment finance companies increased slightly from the previous month, but declined 2.6% year over year. Supplemental data show that trucking and construction led the underperforming sectors, followed by small and medium-sized enterprises.
“Despite recent reports of a softening economy, the level of capital investment by U.S. businesses—both large and small—continues to accelerate,” noted ELFA president and CEO, William G. Sutton.“In fact, the volume of equipment financed in June, as illustrated by the MLFI-25, surpasses that of any single month except for year-end December activity since the beginning of the Great Recession in 2008. We hope that, in spite of the factors adversely affecting economies overseas, our businesses here at home will be able to continue to invest in productive assets.”
Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index for July is 51.5, up from the June index of 48.5, and reflects continuing concern over external economic factors and regulatory and political uncertainty.