The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index showed overall new business volume for December was $12.5 billion, down 5% from new business volume in December 2014.

Short-term gains were more promising, as volume was up 105% from $6.1 billion in November. Cumulative new business volume for 2015 was relatively flat compared with 2014, rising 0.4%.

“With another strong year end, MLFI-25 participants managed to eke out positive growth for the year,” said Ralph Petta, ELFA president and CEO. “However, credit losses inched up during the month, showing some softness in portfolio quality. Now that the Fed has taken a first step toward higher long-term rates and with rock-bottom low oil prices giving way to sluggish fourth quarter growth in the U.S. economy, it will be interesting to see how the equipment finance sector responds in early 2016 and throughout the winter months.”

Receivables over 30 days were 1.1%, unchanged from the previous month and up from 0.96% in the same period in 2014. Charge-offs were 0.41%, up from 0.30% the previous month.

Credit approvals totaled 80.2% in December, up from 79.0% in November. Total headcount for equipment finance companies was up 3.5% year-over-year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for January is 54.0, easing from last month’s index of 60.2.

“This month’s MLFI-25 corroborates feedback we are hearing from some of our clients. December saw a shift in confidence and reflects a pause in continued capital investment in certain sectors of the economy. Turbulent world markets and declining commodity prices, especially in energy, have combined to make companies carefully consider investment in large scale expansion projects,” said Jud Snyder, president of BMO Harris Equipment Finance. “This is partially offset by the equipment finance industry’s willingness to lend and the market’s continued low interest rate environment. These two factors combine to make companies that are expanding more likely to consider debt or lease financing, as opposed to using cash for their capital acquisitions.”