The Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) is 57.3, an increase from the May index of 56.7, reflecting industry participants’ increasing optimism despite continued moderate growth of business investment in equipment, according to the Equipment Leasing & Finance Foundation.
When asked about the outlook for the future, MCI survey respondent Thomas Jaschik, President, BB&T Equipment Finance, said, “Demand for equipment leases has increased significantly over the last 60 days. Whether this is a seasonal factor or an indicator of an improving economy is subject to debate. If demand continues throughout the summer than perhaps we can give the nod to an improving economy.”
- When asked to assess their business conditions over the next four months, 19.4% of executives responding said they believe business conditions will improve over the next four months, up from 9.7% in May. 71% of respondents believe business conditions will remain the same over the next four months, down from 87.1% in May. 9.7% believe business conditions will worsen, up from 3.2% the previous month.
- 19.4% of survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 12.9% in May. 71% believe demand will “remain the same” during the same four-month time period, down from 80.6% the previous month. 9.7% believe demand will decline, up from 6.5% in May.
- 19.4% of executives expect more access to capital to fund equipment acquisitions over the next four months, down from 25.8% in May. 80.6% of survey respondents indicate they expect the “same” access to capital to fund business, an increase from 74.2% the previous month. No one expects “less” access to capital, unchanged from May.
- When asked, 29% of the executives reported they expect to hire more employees over the next four months, an increase from 19.4% in May. 67.7% expect no change in headcount over the next four months, down from 71% last month. 3.2% expect fewer employees, down from 9.7% of respondents who expected fewer employees in May.
- 90.3% of the leadership evaluates the current U.S. economy as “fair,” unchanged from last month. 9.7% rate it as “poor,” also unchanged from May.
- 22.6% of survey respondents believe that U.S. economic conditions will get “better” over the next six months, a decrease from 32.3% in May. 71% of survey respondents indicate they believe the U.S. economy will “stay the same” over the next six months, an increase from 64.5% in May. 6.5% believe economic conditions in the U.S. will worsen over the next six months, an increase from 3.2% who believed so last month.
- In June, 25.8% of respondents indicate they believe their company will increase spending on business development activities during the next six months, unchanged from May. 74.2% believe there will be “no change” in business development spending, and no one believes there will be a decrease in spending, both also unchanged from May.