us money

The early 2020 outlook for the US equipment leasing market is upbeat, according to data from the Equipment Leasing and Finance Foundation, which says business confidence is on the rise for the third month in a row.

The Foundation’s January monthly confidence index for the equipment finance industry (MCI-EFI) hit 59.9, an increase from the December index of 56.2.

When asked about the outlook for the future, MCI-EFI survey respondent David Normandin, president and chief executive officer of Wintrust Specialty Finance said: “Demand for leasing in the segments we are involved in has remained strong with huge demand in Q4 2019. Credit quality has remained solid, and pull through has been good. Unemployment remains low and we see small business customers remaining optimistic.”

When asked to assess their business conditions over the next four months, 15% of executives responding said they believe business conditions will improve over the next four months, up from 10% in December, while 4% believe business conditions will worsen, down from 7% in December.

Most (85%) believe demand will “remain the same” during the same four-month time period, an increase from 77% the previous month. The proportion expecting a decline has fallen to 4%, down from 13% in December.

Over a third (37%) of respondents evaluate the current US economy as “excellent,” up from 23% the previous month. Looking ahead, 13% believe that US economic conditions will get “better” over the next six months, 80% indicate they believe the US economy will “stay the same” over the next six months, and 7% believe economic conditions in the US will worsen over the next six months, all unchanged from December.

Respondent Dave Fate, president and chief executive of Stonebriar Commercial Finance, said: “A strong economy, low interest rates, full employment, and tax and regulatory reform give us optimism in the near term for the equipment finance industry.”