The Equipment Leasing and Finance Association reported a 12% year-over-year improvement and a 10% sequential increase in new business volume in its index designed to reflect a cross-section of industry activity.
The monthly leasing and finance index comprised of 25 companies and known as MLFI-25, included $7.7 billion in new business, the trade group said in a statement.
Although August activity was stronger, the new business volume for the first eight months of 2016 was 6% lower than the same period of last year.
The group also announced that a separate index, business confidence, slipped to 53.8 in September from 54.8 the month before.
“August data are mixed, with new business volume strengthening when compared both to the same period last year and last month,” said Ralph Petta, president of ELFA. “Credit quality continues to show some softness, with charge offs and delinquencies inching upward. Taking together, the Fed’s September decision to stay pat on interest rates, and the approaching presidential election, the sector continues to give no clear indication about where it’s headed.”
“Although our industry has seen overall levels of contraction in new business volume, the August 2016 MLFI-25 results show positive momentum,” said Anthony Sasso, who heads TD Equipment Finance. “Economic and political uncertainties notwithstanding, the fundamentals of our economy remain strong along with favorable drivers for capital equipment investment, such as low interest rates and tax incentives.”
