Check out our 2024 Corporate Sustainability Report!

ELFA Releases June Economic Activity Survey | Construction News

The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $725 billion equipment finance sector, showed their overall new business volume for June was $8.6 billion, up  8% compared to volume in June 2012. Month-over-month, new business volume was up 15% from May. Year to date, cumulative new business volume increased 10% compared to 2012.

Receivables over 30 days were at 1.4% in June, reaching a new historic low, down from 1.6% in May. Delinquencies declined from 2.4% in the same period in 2012. Charge-offs were unchanged for the past four months at the all-time low of 0.3%.

Credit approvals totaled 78.5% in June, relatively unchanged from May.  Fifty-four percent of participating organizations reported submitting more transactions for approval during June, down from 63% the previous month.

Finally, total headcount for equipment finance companies was relatively unchanged from the previous month, and up 1% year over year.

Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index (MCI-EFI) for July is 59.4, an increase from the June index of 57.3, reflecting industry participants’ increasing optimism despite continued moderate demand for equipment.

ELFA President and CEO William G. Sutton, CAE, said: “Businesses continue to increase spending on capital equipment as evidenced by U.S. government statistics showing three consecutive months’ increase in durable goods orders by American firms.  Our June MLFI-25 data confirms this trend: the amount of leasing and financing of business equipment and software continues to grow, while the credit quality of these transactions remains at historic highs. Member companies are optimistic that this trend will continue into the summer months and beyond.”

William Besgen, president and COO, Hitachi Capital America Corp., said, “I believe the trend of increasing new business volume as shown in the recent ELFA industry statistics is a solid reflection of an improving business economy.

We at Hitachi Capital America Corp. are definitely seeing increased activity versus last year in credit applications and new business volume from the over 2000 independent truck dealers throughout the U.S. that we serve, both for new and used vehicles. I feel the small to medium-size businesses that are acquiring this equipment are reinforcing their belief that the overall economy is improving, albeit at a slow, somewhat steady pace.”


Lift & Access is part of the Catalyst Communications Network publication family.