ELFA Index Shows Increase in New Business Volume
The ELFA index report shows monthly declines in business volumes for 2014, but a slight spike in overall cumulative new business volume when compared yearly to 2013.
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The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), showed that overall new business volume for May was $6.9 billion, down 8 percent from new business volume in May 2013. The index, released monthly, reflects the capex or volume of commercial equipment financed in the United States. The May report also found that month-over-month, new business volume was down 14 percent from April 2014, while year-to-date cumulative new business volume increased 3 percent compared to 2013. Additionally, May credit approvals totaled 76.1 percent, a decrease from 77.4 percent in April. The total headcount for equipment finance companies was up 1.0 percent year-over-year.
According to ELFA President and CEO William G. Sutten, “The small decline in new business volume makes the case for a slow recovery in certain sectors of the economy in which equipment financing plays an important role. [The] momentum created by monthly increases in equipment financings on a consistent basis will be difficult to maintain, particularly as certain segments of the U.S. economy try to regain their footing from the economic downturn experienced a few years ago.”
Compiled separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index (MCI-EFI) for June is 61.4, an easing from three consecutive months of two-year high levels which peaked at 65.4.
Equipment Leasing and Finance Association, call 202-238-3400 or visit elfaonline.org.
