The Equipment Leasing & Finance Foundation released the October 2024 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). Overall, confidence in the equipment finance market is 61.8, steady with the September index of 61.9, which was the highest level since January 2022. 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.
“The future for the American economy actually looks bright compared to the international scene, and manufacturing will continue to re-shore with increasing need for capital spending,” Brent Hall, CLFP, senior vice president of Alliance Funding Group, said.
October 2024 Survey Results
The overall MCI-EFI is 61.8, steady with the September index of 61.9.
October 2024 MCI-EFI Survey Comments from Industry Executive Leadership
Bank, Small Ticket
“With the upcoming election close and the Fed starting the cycle of rate cuts, the uncertainty around these specific concerns will lessen,” David Normandin, CLFP, president and CEO of Wintrust Specialty Finance, said. “I think this will help business get back to work solving their customers’ problems and increase investment in capital equipment. Additionally, equipment finance companies, specifically within the bank segment, have unfrozen and are actively investing in the equipment finance sector providing needed access to capital at more attractive rates.”
Bank, Large Ticket
“Lower interest rates will ignite capex for smaller companies that have been on the sidelines for a few years and need to add or replace equipment for growth,” Jeffry Elliott, CLFP, president of Huntington Equipment Finance, said. “Getting past the election should provide some clarity on the economic direction of the U.S., thus more capex investments can be made. Lastly, onshoring will continue to promote infrastructure investment which requires capex spending to execute.”
Captive, Small Ticket
“The Fed’s intent to lower interest rates combined with stabilizing of inflation will stimulate investment, spending and expansion,” Jim DeFrank, executive vice president and chief operating officer of Isuzu Finance of America, said.
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