Equipment Finance Industry Confidence Declines in April
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The Equipment Leasing & Finance Foundation found overall confidence in the equipment finance market has decreased month-over-month, the foundation announced April 20.
The April 2023 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) report puts equipment finance market confidence at 47 points. That compared with 50.3 in March. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by executives from the equipment finance sector.
“I believe current market conditions present opportunities for our industry,” said Jonathan Albin, chief operating officer at Nexseer Capital. “Businesses have to react to the risk of tightening credit markets. As a result, they will be more open to exploring alternatives and supplements to their senior lending facilities to finance capex and source liquidity, and that will lead to opportunities for lessors.”
The MCI-EFI index found that 11.1% of the executives surveyed believe business conditions will improve over the next four months, compared to 10.7% in March. The vast majority at 70.4% believe business conditions will remain the same over the next four months, compared to 57.1% the previous month, while 18.5% believe business conditions will worsen, a decrease from 32.1 % in March.
The index also found that none of the leadership evaluated the current U.S. economy as excellent, down from 3.7% the previous month. But 88.9% of the leadership evaluate the economy as fair, unchanged from March; 11.1% evaluate it as “poor,” an increase from 7.4% last month.
It also found only 7.4% of the survey respondents believe that economic conditions will get better over the next six months, an increase from 3.6% in March. At the same time, 48.2% indicated they believe the economy will stay the same over the next six months, a decrease from 53.6% last month, while 44.4% believe economic conditions in the U.S. will worsen over the next six months, an increase from 42.9% the previous month.
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