Equipment Finance Confidence Eases

The Equipment Leasing and Finance Foundation released the May 2017 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future, as reported by key executives from the $1 trillion equipment finance sector. Confidence in the equipment finance market eased again in May to 63.2, down from the April index of 65.8.

The outlook for the future also shows an unsteady future. In fact, 22.6% say that business conditions will improve, while 71% suggest it will remain the same. Another 6.5% indicate that business conditions will actually worsen.

One of the challenges is the demand for leases and loans to fund capital expenditures. The survey shows 38.7% say it will increase, while 54.8% say it will remain the same.

When looking at the economic outlook for the months ahead, 41.9% believe that the conditions will get better in the next six months, while 51.6% say it will stay the same. Another 6.5% say it will worsen.

The general consensus is that the market conditions aren’t improving anytime soon, but many are hopeful that it won’t worsen in the months ahead.

The good news is 45.2% expect to hire more employees in the months ahead and only 3.2% expect to hire fewer employees, which indicates good signs for the future.

Contractors are a key part in this market. Knowing their equipment needs will help companies make better decisions for the future.

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