The Equipment Leasing & Finance Foundation released the October 2023 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). 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. Overall, confidence in the equipment finance market is 40.1, a decrease from the September index of 50.3.
When asked about the outlook for the future, MCI-EFI survey respondent Mark Bonanno, president and COO, North Mill Equipment Finance, said, “The macroeconomic environment remains challenging. The U.S. is facing the largest peacetime deficit ever. The likelihood of a government shutdown has increased due to U.S. political upheaval and the pending election cycle. Inflation remains significantly above Fed targets, and the possibility of interest rates going higher or remaining elevated for longer than expected is high, making a recession more likely than not.”
October 2023 Survey Results:
The overall MCI-EFI is 40.1, a decrease from the September index of 50.3.
October 2023 MCI-EFI Survey Comment from Industry Executive Leadership:
Bank, Small Ticket
“The equipment finance industry will continue to flex to find the opportunities that exist in our current market and will find solutions to the challenges in pockets of the industry. I am confident that we will continue to grow profitably through this time,” David Normandin, president and chief executive officer, Wintrust Specialty Finance, said.
Independent, Small Ticket
“While we have avoided recession in 2023, there are a number of dark clouds on the horizon that could tip the scale, including the cumulative effect of higher interest rates, higher oil prices, the resumption of student loan payments and the ongoing risk of a government shutdown. Some, but certainly not all, of our customers are wary about the future and seem to be a little more skeptical on capital spending,” Bruce J. Winter, president, FSG Capital, said.
“When the auto union strike is settled, the result is likely going to include an increase in wages and benefits for the workers. An increase in inflation will follow,” James D. Jenks, CEO, Global Finance and Leasing Services, said.
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