Equipment Leasing and Finance Association’s Survey of Economic Activity: Monthly Leasing and Finance Index
- #capex--The Equipment
Leasing and Finance Association’s (ELFA) Monthly
Leasing and Finance Index (MLFI-25), which reports economic
activity from 25 companies representing a cross section of the $1
trillion equipment finance sector, showed their overall new business
volume for April was $7.9 billion, up 8 percent year-over-year from new
business volume in April 2016. Volume was down 11 percent month-to-month
from $8.9 billion in March. Year to date, cumulative new business volume
was up 5 percent compared to 2016.
Receivables over 30 days were 1.30 percent, down from 1.40 percent the previous month and up from 1.20 percent in the same period in 2016. Charge-offs were 0.38 percent, down from 0.68 percent the previous month, and up from 0.31 percent in the year-earlier period.
Credit approvals totaled 75.9 percent in April, up from 74.5 percent in March. Total headcount for equipment finance companies was up 19.9 percent year over year, largely attributable to continued acquisition activity at an MLFI reporting company.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for May is 63.2, easing from the April index of 65.8.
ELFA President and CEO Ralph Petta said, “The start of the second quarter as reported by a representative sample of ELFA member companies was a relatively strong one, with new business volume increasing eight percent on a year-over-year basis. Whether this robust activity was the result of slightly rising interest rates or reflective of sound fundamentals in the U.S. economy is yet to be determined. What is known, however, is that the equipment finance business is off to a good start this year. Credit markets also appear to be performing well, as evidenced by lower delinquencies and charge offs.”
Siemens Financial Services Commercial Finance North America CEO Gary Amos said, “A new generation of technological innovation and increased connectivity has many industries retaining positive optimism for new equipment leasing growth prospects. Credit approval ratings are still lagging behind last year’s numbers, which could signal a rise in new customer applications and orders for 2017. Currently, volume for 2017 is up, and credit quality is becoming increasingly paramount. Economic trepidation overshadows the economy as the new presidential administration establishes its identity.”
About the ELFA’s MLFI-25
The MLFI-25 is the only index that reflects capex—the volume of commercial equipment financed in the U.S.—and is released as a complementary economic indicator the day before the U.S. Department of Commerce releases the durable goods report.
To read a detailed description and methodology of the MLFI-25, visit http://www.elfaonline.org/Data/MLFI/
About the ELFA
The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $1 trillion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its more than 575 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers. ELFA has been equipping business for success for more than 50 years. For more information, please visit www.elfaonline.org.
Follow ELFA:
Twitter: @ELFAonline
LinkedIn: http://www.linkedin.com/groups?gid=89692
Facebook: https://www.facebook.com/ELFApage
ContactsELFA
Media/Press Contact:
Amy Vogt, Vice President, Communications and Marketing
202-238-3438
avogt@elfaonline.org
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April New Business Volume Up 8 Percent Year-over-year, Down 11
Percent Month-to-month; Up 5 Percent Year-to-date
WASHINGTON–(BUSINESS WIRE)–#capex–The Equipment
Leasing and Finance Association’s (ELFA) Monthly
Leasing and Finance Index (MLFI-25), which reports economic
activity from 25 companies representing a cross section of the $1
trillion equipment finance sector, showed their overall new business
volume for April was $7.9 billion, up 8 percent year-over-year from new
business volume in April 2016. Volume was down 11 percent month-to-month
from $8.9 billion in March. Year to date, cumulative new business volume
was up 5 percent compared to 2016.
Receivables over 30 days were 1.30 percent, down from 1.40 percent the
previous month and up from 1.20 percent in the same period in 2016.
Charge-offs were 0.38 percent, down from 0.68 percent the previous
month, and up from 0.31 percent in the year-earlier period.
Credit approvals totaled 75.9 percent in April, up from 74.5 percent in
March. Total headcount for equipment finance companies was up 19.9
percent year over year, largely attributable to continued acquisition
activity at an MLFI reporting company.
Separately, the Equipment Leasing & Finance Foundation’s Monthly
Confidence Index (MCI-EFI) for May is 63.2, easing from the April index
of 65.8.
ELFA
President and CEO Ralph Petta said, “The start of the second
quarter as reported by a representative sample of ELFA member companies
was a relatively strong one, with new business volume increasing eight
percent on a year-over-year basis. Whether this robust activity was the
result of slightly rising interest rates or reflective of sound
fundamentals in the U.S. economy is yet to be determined. What is known,
however, is that the equipment finance business is off to a good start
this year. Credit markets also appear to be performing well, as
evidenced by lower delinquencies and charge offs.”
Siemens
Financial Services Commercial Finance North America CEO Gary Amos
said, “A new generation of technological innovation and increased
connectivity has many industries retaining positive optimism for new
equipment leasing growth prospects. Credit approval ratings are still
lagging behind last year’s numbers, which could signal a rise in new
customer applications and orders for 2017. Currently, volume for 2017 is
up, and credit quality is becoming increasingly paramount. Economic
trepidation overshadows the economy as the new presidential
administration establishes its identity.”
About the ELFA’s MLFI-25
The MLFI-25 is the only index that reflects capex—the
volume of commercial equipment financed in the U.S.—and is released as a
complementary economic indicator the day before the U.S. Department
of Commerce releases the durable
goods report.
To read a detailed description and methodology of the MLFI-25, visit http://www.elfaonline.org/Data/MLFI/
About the ELFA
The Equipment Leasing and Finance Association (ELFA) is the trade
association that represents companies in the $1 trillion equipment
finance sector, which includes financial services companies and
manufacturers engaged in financing capital goods. ELFA members are the
driving force behind the growth in the commercial equipment finance
market and contribute to capital formation in the U.S. and abroad. Its
more than 575 members include independent and captive leasing and
finance companies, banks, financial services corporations,
broker/packagers and investment banks, as well as manufacturers and
service providers. ELFA has been equipping business for success for more
than 50 years. For more information, please visit www.elfaonline.org.
Follow ELFA:
Twitter: @ELFAonline
LinkedIn: http://www.linkedin.com/groups?gid=89692
Facebook:
https://www.facebook.com/ELFApage
Contacts
ELFA
Media/Press Contact:
Amy Vogt, Vice President,
Communications and Marketing
202-238-3438
avogt@elfaonline.org
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