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The equipment finance industry is continuing to perform well, according to latest figures from the Equipment Leasing and Finance Association (ELFA).

It says overall new business volume for October was $8.9 billion, up 6% compared to October 2017, while year-to-date cumulative new business volume rose 4%.

Volume was up 5% compared to September from $8.5 billion, according to ELFA’s monthly leasing and finance index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the sector.

Receivables over 30 days were 1.7%, up from 1.6% the previous month and up from 1.4% the same period in 2017. Charge-offs were 0.37%, down from 0.4% the previous month, and down from 0.41% in the year-earlier period.

Credit approvals totaled 76.5% in October, up from 75.7% in September.

Ralph Petta, ELFA president and CEO, said new business continued to increase, despite slight - and steady - increases in short-term interest rates and reports of tariff concerns in some sectors of the economy.

He said: “Underlying fundamentals in the US economy continue to support a favorable environment for business growth.

“Third quarter GDP grew 3.5%, labor markets are strong and federal tax legislation containing lower corporate tax rates and immediate depreciation write-offs have been in effect now for 10 months.

“These factors, coupled with a seemingly benign credit market, are propelling the equipment finance industry forward.”

Scott Rafkin, president, Volvo Financial Services, who took part in the survey, said: “Overall, the business environment for Volvo Financial Services remains sound and stable. Strong originations and low customer delinquencies point to continued good performance in the equipment finance sector as we close 2018 and enter into 2019.

“North America is benefiting from a top cycle business climate, requiring all lenders to prepare for the eventual slowdown. Overall, however, I’m pleased with how the equipment finance industry performed this month and thus far in 2018.”