Equipment finance market up for third straight month
The Equipment Leasing & Finance Foundation released the February 2013 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) on Feb. 22. The index indicates that overall, confidence in the equipment finance market is up for the third consecutive month at 58.7, an increase from the January index of 54.2.
The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $725 billion equipment finance sector.
When asked about the outlook for the future, MCI survey respondent Anthony Cracchiolo, president and CEO, Vendor Services, U.S. Bank Equipment Finance, said, “The industry continues to look stable and positioned on solid footing for future growth. The replacement economy is well under way. However, expansion of the markets is still questionable. The next several months will tell the story for 2013 and answer the question of whether 2013 will see moderate or significant growth. In either case, the equipment finance industry will be on the leading edge of the overall economy.”
The February 2013 Survey Results from the Equipment Leasing & Finance Foundation are as follows:
The overall MCI-EFI is 58.7, up from the January index of 54.2.
- When asked to assess their business conditions throughout the next four months, 20 percent of executives responding said they believe business conditions will improve during the next four months, up from 6.1 percent in January. 77.1 percent of respondents believe business conditions will remain the same during the next four months, down from 87.9 percent in January. 2.9 percent believe business conditions will worsen, down from 6.1 percent the previous month.
- 20 percent of survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, an increase from 12.1 percent in January. 77.1 percent believe demand will “remain the same” during the same four-month time period, up from 75.8 percent the previous month. 2.9 percent believe demand will decline, down from 12.1 percent in January.
- 22.9 percent of executives expect more access to capital to fund equipment acquisitions during the next four months, up from 18.2 percent in January. 77.1 percent of survey respondents indicate they expect the “same” access to capital to fund business, a decrease from 85.3 percent the previous month. No one expects “less” access to capital, unchanged from January.
- When asked, 22.9 percent of the executives reported they expect to hire more employees during the next four months, down from 24.2 percent in January. 65.7 percent expect no change in headcount over the next four months, down from 69.7 percent last month. 11.4 percent expect fewer employees, up from 6.1 percent of respondents who expected fewer employees in January.
- 85.7 percent of the leadership evaluates the current U.S. economy as “fair,” down from 87.9 percent in January. 11.4 percent rate it as “poor,” down from 12.1 percent in January. One survey respondent rated the current economy as “excellent.”
- 22.9 percent of survey respondents believe that U.S. economic conditions will get “better” during the next six months, up from 6.1 percent in January. 74.3 percent of survey respondents indicate they believe the U.S. economy will “stay the same” throughout the next six months, down from 84.8 percent in January. 2.9 percent believe economic conditions in the U.S. will worsen during the next six months, a decrease from 9.1 percent who believed so in January.
- In February, 37.1 percent of respondents indicate they believe their company will increase spending on business development activities during the next six months, up from 30.3 percent in January. 60 percent believe there will be “no change” in business development spending, down from 69.7 percent last month. 2.9 percent believe there will be a decrease in spending, up from no one who believed so last month.
From our partners
MORE FROM Aggbeat Online
SUBSCRIBE & FOLLOW
- Quarry explosion damages homes and cars and injures one person1059 Views
- Martin Marietta mine among 18 cited during MSHA monthly inspection in April632 Views
- EPA releases final Waters of the U.S. rule, aggregates industry reacts358 Views
- Man dies after nearly 100-foot fall into quarry355 Views
- Vulcan Materials conducts blast for the 'Mayan steps' restoration338 Views