Measuring The Confidence Of The Equipment Lease Sector

equipment-lease-sectorHow Company Executives Are Thinking

Every month studies are conducted to measure the confidence level of businesses in the equipment leasing and financing sector, and recent finding s indicate that the market has remained relatively unchanged for the last two months. The Equipment Leasing and Finance Foundation monthly confidence index remained at 53.3 throughout September and October. This may reflect a state of steady industry confidence in spite of the economic, political, and regulatory turmoil affecting much of US industry.

Despite the stability of the market, some executives are not as optimistic about the market over time, believing that variables such as accounting rules, depreciation rates, and cost of funds will alter the landscape dramatically.

8.6% of executives say that they believe that business conditions will show signs of improvement over the next four months, while 74.3% believe that conditions will remain the same. 17.1% believe that conditions for businesses will worsen during the same four month time frame.

20% of respondents believe that the demand for leases and loans to fund capital expenditures will increase over the next four months, while 57% percent believe it will remain the same and 22.9% believe that demand will decline.

As for access to capital to fund equipment acquisitions, 20% of executives expect that they will have more access to such funds, with 80% expecting no changes in availability. None of the respondents expected to have less access to capital, a figure unchanged from September’s report.

When it comes to hiring new employees, 34.3% expected to be able to do so over the coming four months, with 57.% expecting no change in employee numbers, and 8.6% expect fewer employees, a sharp rise from 2.8% recorded the previous month. Two thirds of the leadership  evaluate the current US economic state as fair, while 34.3% rate it as poor.

What The Coming Year Will Bring

Only 8.6% of respondents believe that the US economy will improve over the next four months, while 77% believe it will stay the same.  14.3% believe things will only get worse over the coming months.

On company spending policies, 37.1% believe that their company will increase spending on business development activities in the next six month, while 62.9% believe that there will be no change. No one is expecting a decrease in spending levels.

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This study is conducted monthly and the results were unusually uniform across a number of categories, with percentage ration remaining close in all tested areas.

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