The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the equipment finance sector, showed overall new business volume for February was $5.9 billion, down 3% year over year from new business volume in February 2016.

Volume was down 5% month to month from $6.2 billion in January. Year to date, cumulative new business volume was up 0.5% compared to 2016.

Receivables over 30 days were 1.50%, down from 1.70% the previous month and up from 1.40% in the same period in 2016. Charge-offs were 0.38%, down from 0.43% the previous month, and up slightly from 0.37% in the year-earlier period.

Credit approvals totaled 74.8% in February, down from 75.4% in January. Total headcount for equipment finance companies was up 18.6% year over year, a spike largely attributable to continued acquisition activity at an MLFI reporting company.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index for March is 71.1, easing from the February index of 72.2 but remaining among the highest levels of the last two years.

ELFA President and CEO Ralph Petta said, “New business volume during the first couple months of 2017 continues the sluggish growth pattern that began 2016. This slow start belies the business-friendly environment that many business and economic commentators point to in characterizing the new administration in Washington. Credit quality is mixed as well. With the Fed increasing its short-term interest rate target by 25 bps at its most recent March meeting, we will be watching closely the impact — if any — on demand in the equipment finance sector.”

The MLFI-25 is a financial indicator that complements the durable goods report and other economic indexes, including the Institute for Supply Management Index, which reports economic activity in the manufacturing sector.