Stock Groups

U.S. business borrowing for equipment rises 8% in Nov

by Mike Robinson

[ad_1]

© Reuters. FILEPHOTO: A scaffold is erected by construction workers at a site during phase one of reopening the job site after lockdown. This was in the wake of the COVID-19 outbreak, which occurred in New York City (New York), U.S.A. on June 8, 2020. REUTERS/Brendan McDermid

(Reuters) – The U.S. equipment financing industry saw an 8.8% increase in borrowings in November compared to a year ago, according to the Washington Equipment Leasing and Finance Association.

The amount of new loans and leases that were issued to firms last month was $7.9 million, an increase from the $7.3 billion received a year prior. The October borrowings were down by 26%.

Supply chain disruptions continue plagueing an otherwise strong economy. This creates inflationary pressures which are a concern to many Americans. Ralph Petta, Chief Executive Officer of ELFA said this in a statement.

“I hope that the Fed (U.S. Federal Reserve), doesn’t halt recovery (of economy) in its efforts for further inflation control.”

ELFA reports on economic activity in the $1-trillion sector of equipment financing. Credit approvals were down by 78% from October, to 77.2%.

This Washington-based organization’s financing and leasing index tracks the amount of American commercial equipment that has been financed.

This index was compiled from a survey of 25 members including Bank of America Corp (NYSE 🙂 and CIT Group(NYSE 🙂 Inc, as well as financing affiliates of or units of. Caterpillar Inc (NYSE -), Dell Technologies (NYSE –) Inc, Siemens AG (OTC ) Canon Inc and Volvo AB AB (OTC )

The Equipment Leasing and Finance Foundation (ELFA’s affiliate) reported a December confidence reading of 63.9%, an improvement from November’s index which was 64.6%. Positive business outlooks are indicated by a reading of 50 or more

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.

[ad_2]