By MMH Staff ·
June 22, 2022
The Equipment Leasing & Finance Foundation released its June 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector. Overall, confidence in the equipment finance market is 50.9, steady with the May index of 49.6.
When asked about the outlook for the future, MCI-EFI survey respondent Glenn Davis, President, RESIDCO, said, “Interest rates are a major concern. Uncertainties related to Fed action or inaction, as well as the continuing war in Ukraine will weigh heavily on the economy.”
When asked to assess their business conditions over the next four months, 11.1% of executives responding said they believe business conditions will improve over the next four months, an increase from 6.9% in May. 55.6% believe business conditions will remain the same over the next four months, down from 62.1% the previous month. 33.3% believe business conditions will worsen, an increase from 31% in May.
In other findings:
• 11.1% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 10.3% in May. 66.7% believe demand will “remain the same” during the same four-month time period, an increase from 65.5% the previous month. 22.2% believe demand will decline, down from 24.1% in May.
• 7.4% of the leadership evaluate the current U.S. economy as “excellent,” an increase from 3.5% the previous month. 74.1% of the leadership evaluate the current U.S. economy as “fair,” down from 79.3% in May. 18.5% evaluate it as “poor,” an increase from 17.2% last month.
• 7.4% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, an increase from 3.5% in May. 37% indicate they believe the U.S. economy will “stay the same” over the next six months, an increase from 27.6% last month. 55.6% believe economic conditions in the U.S. will worsen over the next six months, a decrease from 69% the previous month.
June 22, 2022
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