US business equipment borrowings fall 10% Y/Y in August, ELFA says
Sept 24 (Reuters) -U.S. companies borrowed 10% less to finance equipment investments in Augustcompared with the year-ago period, the Equipment Leasing and Finance Association (ELFA) said on Tuesday.
New loans, leases and lines of credit signed up by companies in Augustwere also down 17%from $11.1 billiona month earlier.
"The Fed’s decision to begin lowering interest rates will support demand for equipment, even if some businesses wait for rates to fall further before investing," ELFA President and CEO Leigh Lytle said.
The Washington-based trade association, which reports economic activity for the over $1 trillion-worth equipment finance sector, also said that credit approvals for U.S. companies in August, at 76%,were unchanged from July.
ELFA's non-profit affiliate, the Equipment Leasing & Finance Foundation, said its confidence index for September stood at 61.9,its highest level in more than two years, up from the August index of 58.4.
A reading above 50 indicates a positive business outlook.
The ELFA's leasing and finance index is based on a 25-member survey that includes Bank of America BAC.N and financing units of Caterpillar CAT.N, Dell Technologies DELL.N, Siemens AG SIEGn.DE, Canon Inc 7751.T and Volvo AB VOLVb.ST.
Reporting by Anshuman Tripathy in Bengaluru; Editing by Janane Venkatraman
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
