The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25) showed overall new business volume for May was $9.1 billion. This is up 18% year-over-year from new business volume in May 2018. Volume was up 3% month-to-month from $8.8 billion in April. Year to date, cumulative new business volume was flat compared to 2018. The ELFA Monthly Confidence Index (MCI-EFI) in June, however, wass 52.8, which is down from the May index of 59.2.

Receivables over 30 days were 1.70%, up from 1.50% the previous month and up from 1.60% the same period in 2018. Charge-offs were 0.46%, up from 0.32% the previous month, and up from 0.31% in the year-earlier period.

ELFA president and CEO Ralph Petta said in a press release, “The continued low interest rate environment coupled with solid fundamentals in the U.S. economy provide incentive for U.S. businesses to expand and grow their operations. As they do so, productive equipment becomes a critical component in serving their customers and enabling them to achieve success in the marketplace. However, at the same time, we notice a slight deterioration in credit quality, which bears monitoring. Recently, the Fed and other analysts raised concerns over potential storm clouds on the economic horizon. These warnings also bear close attention in the weeks and months ahead.”

Daniel Krajewski, president and CEO, Sertant Capital, LLC, added, “Overall growth in new business volume demonstrates continued forward momentum in the economy. Advancement in technologies across most industry verticals will likely influence a positive trend in equipment investment in the coming months. The decline in credit quality, however, is a factor worth monitoring.”

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