The Equipment Leasing and Finance Association’s Monthly Leasing and Finance Index (MLFI-25) showed overall new business volume for June was $10.0 billion, up 3% year-over-year from new business volume in June 2015. Volume was up 47% month-over-month from $6.8 billion in May. Year to date, cumulative new business volume decreased 7%compared to 2015.

Receivables over 30 days were 1.4%, an increase from the previous month and up from 1.02% in the same period in 2015. Charge-offs were 0.65%, up from 0.33% the previous month.

Credit approvals totaled 78.1% in June, up from 76.5% in May. Total headcount for equipment finance companies was up 3.0% year-over-year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for July is 52.5, steady with the June index of 52.3.

“New business volume experienced a healthy increase in June, eclipsing a similarly strong year-ago month. In fact, June’s originations were the largest since end-of-year 2015, when business activity in the equipment finance sector typically spikes upward. However, volume for the year thus far is still down when compared to last year at this time,” said ELFA President and CEO Ralph Petta. “This uneven performance appears to reflect the trend toward continued slow economic growth and volatile equity markets in the U.S., as well as troubling international events that are causing business owners to approach capital investment decisions with a wary eye. A decline in portfolio quality contributes to a narrative of an equipment finance market trying to gain its footing in the face of a volatile economy amidst a recent period of uncertain political and social unrest.”

Alan Sikora, CEO of First American Equipment Finance, said, “After several challenging months, the U.S. equipment leasing and finance industry experienced growth in June. At First American Equipment Finance, we saw strong year-over-year growth in June and in the first six months of 2016. More and more clients are concluding that equipment leasing is an efficient, cost-effective and convenient way to acquire the equipment they need. From an industry perspective, it is encouraging to see U.S. businesses increase their investments in capital equipment and software, despite political uncertainty and global macroeconomic events.”