Equipment finance confidence dips in April
The Equipment Leasing & Finance Foundation's monthly confidence index dropped to 56.1 in April, but optimism about the future remains high.
The Equipment Leasing & Finance Foundation’s April 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today shows that overall confidence in the equipment finance market is at 56.1, a decrease from the March index of 58.2.
MCI-EFI survey respondent Jim DeFrank, EVP and Chief Operating Officer, Isuzu Finance of America, Inc., said in a press release, “There is huge pent-up demand for all kinds of products. In the transportation space, the final mile vehicles are in great demand, and we see this continuing for at least 12 to 18 months. Once the supply chain catches up, we will see some kind of normalcy return to the equipment finance industry.”
April 2022 survey results
When asked to assess their business conditions over the next four months, 14.8% of executives responding said they believe business conditions will improve over the next four months, a decrease from 21.4% in March. 63% believe business conditions will remain the same over the next four months, up from 50% the previous month. 22.2% believe business conditions will worsen, a decrease from 28.6% in March.
29.6% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 25% in March. 55.6% believe demand will “remain the same” during the same four-month time period, a decrease from 75% the previous month. 14.8% believe demand will decline, up from none in March.
22.2% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, up from 21.4% in March. 77.8% of executives indicate they expect the “same” access to capital to fund business, a decrease from 78.6% last month. None expect “less” access to capital, unchanged from the previous month.
When asked, 40.7% of the executives report they expect to hire more employees over the next four months, down from 46.4% in March. 59.3% expect no change in headcount over the next four months, an increase from 50% last month. None expect to hire fewer employees, down from 3.6% in March.
14.8% of the leadership evaluate the current U.S. economy as “excellent,” an increase from 3.6% the previous month. 74.1% of the leadership evaluate the current U.S. economy as “fair,” down from 85.7% in March. 11.1% evaluate it as “poor,” a slight increase from 10.7% last month.
7.4% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, relatively unchanged from 7.1% in March. 51.9% indicate they believe the U.S. economy will “stay the same” over the next six months, a decrease from 57.1% last month. 40.7% believe economic conditions in the U.S. will worsen over the next six months, an increase from 35.7% the previous month.
In April, 29.6% of respondents indicate they believe their company will increase spending on business development activities during the next six months, down from 42.9% the previous month. 66.7% believe there will be “no change” in business development spending, up from 57.1% in March. 3.7% believe there will be a decrease in spending, up from none last month.
Original content can be found at Equipment and Leasing Finance Foundation.