When asked about the outlook for the future, MCI-EFI survey respondent Quentin Cote, CLFP, president, Mintaka Financial, said, “Low unemployment continues to fuel consumer strength, and seems to be propelling the market forward. I am concerned about the deficit and potential inflation, and their impact on interest rates.”
Survey highlights also included:
When asked to assess their business conditions over the next four months, 13.3% of executives responding said they believe business conditions will improve over the next four months, down from 20% in March. 76.7% of respondents believe business conditions will remain the same over the next four months, an increase from 70% the previous month. 10% believe business conditions will worsen, unchanged from the previous month.
13.3% of survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, a decrease from 23.3% in March. 83.3% believe demand will “remain the same” during the same four-month time period, an increase from 70% the previous month. 3.3% believe demand will decline, down from 6.7% who believed so in March.
6.7% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, down from 13.3% in March. 93.3% of executives indicate they expect the “same” access to capital to fund business, an increase from 86.7% last month. None expect “less” access to capital, unchanged from last month.
When asked, 46.7% of the executives report they expect to hire more employees over the next four months, unchanged from March. 40% expect no change in headcount over the next four months, a decrease from 46.7% last month. 13.3% expect to hire fewer employees, up from 6.7% last month.
40% of the leadership evaluate the current U.S. economy as “excellent,” up from 36.7% in March. 60% of the leadership evaluate the current U.S. economy as “fair,” a decrease from 63.3% the previous month. None evaluate it as “poor,” unchanged from March.
6.7% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, unchanged from March. 73.3% of survey respondents indicate they believe the U.S. economy will “stay the same” over the next six months, a decrease from 80% the previous month. 20% believe economic conditions in the U.S. will worsen over the next six months, an increase from 13.3% in March.
In April, 36.7% of respondents indicate they believe their company will increase spending on business development activities during the next six months, an increase from 33.3% last month. 63.3% believe there will be “no change” in business development spending, a decrease from 66.7% in March. None believe there will be a decrease in spending, unchanged from last month.
Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $1 trillion equipment finance sector.
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