U.S. business borrowing for equipment falls 13% in September: ELFA

In this news, we discuss the U.S. business borrowing for equipment falls 13% in September: ELFA.

(Reuters) – US corporate borrowing for capital investment fell about 13% in September from a year earlier, the Equipment Leasing and Finance Association (ELFA) said on Thursday.

Firms signed $ 8.7 billion in new loans, leases and lines of credit last month, up from $ 10 billion a year earlier. Borrowing in September increased 24% from the previous month.

“Despite the decline in new business in September year over year, a review of data starting with the onset of the pandemic in February shows that the industry, in general, is holding up,” said Ralph Petta, CEO of ELFA.

“Anecdotal evidence from some of the ELFA member companies indicates that they are having a very good year.”

The Washington-based ELFA, which reports economic activity for the equipment finance industry of nearly $ 1 trillion, said credit approvals rose to 72.9% in September from 71% in August.

ELFA’s Leasing and Financing Index measures the volume of commercial equipment financed in the United States.

The index is based on a survey of 25 members, including Bank of America Corp BAC.N, CIT Group Inc CIT.N and subsidiaries or financing units of Caterpillar Inc CAT.N, Dell Technologies Inc DELL.N, Siemens AG SIEGn. DE, Canon Inc and Volvo AB VOLVb.ST.

The Equipment Leasing and Finance Foundation, the nonprofit subsidiary of ELFA, released a monthly confidence index of 55 in October, down from September of 56.5.

A reading above 50 indicates a positive trading outlook.

Reporting by Shreyasee Raj in Bengaluru; Edited by Ramakrishnan M.

Original © Thomson Reuters

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