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U.S. business borrowing for equipment rises 6% in September

by Mike Robinson

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© Reuters. FILE PHOTO – A worker removes an obstruction from a machine in the Amazon fulfillment center Robbinsville (New Jersey), U.S.A, November 27, 2017. REUTERS/Lucas Jackson

(Reuters] – U.S. firms increased their capital investment borrowings in September by 6% compared to a previous year, said the Equipment Leasing and Finance Association.

Last month’s new loans, leases, and credit lines were signed by 92.5 billion companies, up from the $8.7 billion last year. In August, borrowings increased by 8%

Ralph Petta (ELFA chief executive officer) stated that supply chain disruptions, inflation worries continue and the Fed will gradually reduce its asset purchases in near future.

“For now, liquidity is abundant and businesses are acquiring the productive equipment necessary to respond to customer demand in a variety of market sectors,” he said.

Washington’s ELFA reports on economic activity in the $1 trillion equipment finance industry. Credit approvals were unchanged at 76.3% from August.

The ELFA financing and leasing index measures commercial equipment financed in the United States.

Based on a survey of 25 participants, the index includes 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.

According to ELFA, the Equipment Leasing and Finance Foundation reported a month of confidence at 61.1%. That’s an improvement from September’s 60.5%. If the reading is above 50, it indicates that you have a positive outlook for your business.

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