Washington, DC (June 19, 2013) – The Equipment Leasing & Finance Foundation (the Foundation) has released the June 2013 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $725 billion equipment finance sector. Overall, confidence in the equipment finance market is 57.3, an increase from the May index of 56.7, reflecting industry participants’ increasing optimism despite continued moderate growth of business investment in equipment.
When asked about the outlook for the future, MCI survey respondent Thomas Jaschik, President, BB&T Equipment Finance, said, “Demand for equipment leases has increased significantly over the last 60 days. Whether this is a seasonal factor or an indicator of an improving economy is subject to debate. If demand continues throughout the summer than perhaps we can give the nod to an improving economy.”
June 2013 Survey Results
The overall MCI-EFI is 57.3, an increase from the May index of 56.7.
When asked to assess their business conditions over the next four months, 19.4% of executives responding said they believe business conditions will improve over the next four months, up from 9.7% in May. 71% of respondents believe business conditions will remain the same over the next four months, down from 87.1% in May. 9.7% believe business conditions will worsen, up from 3.2% the previous month.
- 19.4% of survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 12.9% in May. 71% believe demand will “remain the same” during the same four-month time period, down from 80.6% the previous month. 9.7% believe demand will decline, up from 6.5% in May.
- 19.4% of executives expect more access to capital to fund equipment acquisitions over the next four months, down from 25.8% in May. 80.6% of survey respondents indicate they expect the “same” access to capital to fund business, an increase from 74.2% the previous month. No one expects “less” access to capital, unchanged from May.
- When asked, 29% of the executives reported they expect to hire more employees over the next four months, an increase from 19.4% in May. 67.7% expect no change in headcount over the next four months, down from 71% last month. 3.2% expect fewer employees, down from 9.7% of respondents who expected fewer employees in May.
- 90.3% of the leadership evaluates the current U.S. economy as “fair,” unchanged from last month. 9.7% rate it as “poor,” also unchanged from May.
- 22.6% of survey respondents believe that U.S. economic conditions will get “better” over the next six months, a decrease from 32.3% in May. 71% of survey respondents indicate they believe the U.S. economy will “stay the same” over the next six months, an increase from 64.5% in May. 6.5% believe economic conditions in the U.S. will worsen over the next six months, an increase from 3.2% who believed so last month.
- In June, 25.8% of respondents indicate they believe their company will increase spending on business development activities during the next six months, unchanged from May. 74.2% believe there will be “no change” in business development spending, and no one believes there will be a decrease in spending, both also unchanged from May.
View the full report at www.leasefoundation.org/indrsrcs/mci
