The Equipment Leasing & Finance Foundation recently released the December Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). Overall, confidence in the equipment finance market is 45.9, an increase from the November index of 43.7.
“’Cautious optimism’ is the theme as we move into 2023. The Federal Reserve is signaling that rate increases are slowing down; yet, this move doesn’t outweigh the softening demand for equipment financing due to rates being so high as a result,” Adam Warner, president of Key Equipment Finance, said. “Businesses will need to continue moving forward regardless, and that means implementing new technology to increase productivity, efficiency and profitability.”
December 2022 Survey Results:
The overall MCI-EFI is 45.9, an increase from the November index of 43.7.
“The pent-up demand is still very strong. We see this continuing through Q2 2023.” Jim DeFrank, executive vice president and chief operating officer of Isuzu Finance of America, said.
“In this economy, cash is king and obtaining financing from traditional funding sources will only get more challenging.” James D. Jenks, CEO of Global Finance and Leasing Services, said.
“We are at an interesting crossroads as economists predict a looming recession and the Fed continues to raise interest rates to tame the inflation beast,” Michael Romanowski, president of Farm Credit Leasing, said. “Customers are sharpening the pencil on major expansion opportunities to ensure timing is right for investment. We continue to find solutions to provide value to our customers and markets in this challenging environment.”
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