According to the Equipment Leasing and Finance Association’s Monthly Leasing and Finance Index, overall new business volume for May was $7.7 billion, unchanged year-over-year from new business volume in May 2017. Volume was down 3% month-to-month from $7.9 billion in April. Year to date, cumulative new business volume was up 7% compared to 2017.

“Business confidence and slowly rising interest rates appear to be serving as stimulus to increased demand for equipment,” said Ralph Petta, ELFA president and CEO. “So long as fundamentals in the U.S. economy remain strong, we expect this demand cycle to continue into and beyond the summer months this year. The one wild card that could derail this benign scenario is tariff frictions with our trading partners across our contiguous borders, the EU and China.”

Receivables over 30 days were 1.60%, down from 2.40% the previous month (which included an unusually high data point from one outlier respondent) and up from 1.40% the same period in 2017. Charge-offs were 0.31%, up slightly from 0.30% the previous month, and down from 0.47% in the year-earlier period.

Credit approvals totaled 76.8% in May, up from 76.2% in April. Total headcount for equipment finance companies was flat year over year. During 2017, headcount was elevated due to acquisition activity at an MLFI reporting company.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in June is 66.2, up from the May index of 64.6.

“The U.S. economy continues to be strong, and business investment could be one of its bright spots,” said Martha Ahlers, president of United Leasing. “We continue to see growth in our equipment finance verticals during the first half of 2018, due partially to the impact of lighter regulatory touch. Despite the increasing interest rate environment, companies continue to take advantage of tax benefits for equipment acquisitions. Lenders should remain optimistic and expect steady conditions to encourage a relatively strong pace of capex spending throughout 2018.”