(Reuters) – U.S. firms borrowed 2% less in January than a year ago to fund their equipment investments, according to the Equipment Leasing and Finance Association. This is because of increased production in order to satisfy demand.

Last month’s new loans, leases, and credit lines were signed by $8.3 Billion of companies, up from $8.1 billion one year ago. The December increase in borrowings was 2%.

Ralph Petta (ELFA’s chief executive) stated that despite persistent supply chain disruptions across several collateral categories, and nagging inflation the equipment financing industry picks-up in January exactly where it left off last season.”

ELFA reports on economic activity in the $1-trillion equipment financing sector. Credit approvals were slightly lower than December’s 78.6%.

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 :), CIT Group(NYSE 🙂 Inc, and any financing affiliates. Caterpillar Inc (NYSE :), Dell Technologies (NYSE 🙂 Inc., Siemens AG(OTC :), Canon Inc. and Volvo AB.

The Equipment Leasing & Finance Foundation, ELFA’s non-profit affiliate, said its confidence index for February was at 61.8%, down from 63.9% in January. If the reading is above 50, it indicates that you have a positive outlook for your business.