Equipment Leasing and Finance Association’s Survey of Economic Activity: Monthly Leasing and Finance Index
By Business Wire News
By Business Wire News
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 $903 billion equipment finance sector, showed their overall new business volume for July was $8.2 billion, up 4 percent from new business volume in July 2014. Volume was down 14 percent from $9.5 billion in June. Year to date, cumulative new business volume increased 8 percent compared to 2014.
Receivables over 30 days were 1.0 percent, down slightly from 1.1 percent the previous month and unchanged from the same period in 2014. Charge-offs remained at an all-time low of 0.2 percent for the 17th consecutive month.
Credit approvals totaled 79.0 percent in July, down slightly from 79.4 percent in June. Total headcount for equipment finance companies was up 5.4 percent year over year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for August is 67.4, an increase from the July index of 62.6.
ELFA President and CEO William G. Sutton, CAE, said, “The consensus forecast for the second half of 2015 is for the U.S. to show modest, if not robust, economic growth. July MLFI-25 data provide evidence of this narrative, in terms of originations, credit quality and headcount. Despite economic headwinds in parts of Europe and China, as well as constant chatter about a looming interest rate hike by the Fed, U.S. businesses in many sectors are investing steadily in productive assets, in the process relying on financing solutions for these equipment acquisitions. Hopefully, this trend continues for the balance of the year.”
Harry Kaplun, President, Specialty Finance, Frost Bank, said, “The MLFI-25 continues to support the strength in the equipment finance industry. Growing employment, minimal losses and high approval rates are all indicative of a favorable business climate.”
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 $903 billion 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.
Amy Vogt, Vice President, Communications and Marketing