Contractors Hot Line is part of the Catalyst Communications Network publication family.
Contractors Hot Line is part of the Catalyst Communications Network publication family.
The Equipment Leasing & Finance Foundation (the Foundation) released the October 2024 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today, showing overall confidence in the equipment finance market holding steady at 61.8, just below September's 61.9 — the highest since January 2022.
“The future for the American economy looks bright, especially compared to the international scene, with manufacturing driving the need for capital spending,” Brent Hall, senior vice president at Alliance Funding Group, said.
This index reflects the outlook of executives in the $1 trillion equipment finance sector.
Survey highlights include:
“With the upcoming election close and the Fed starting the cycle of rate cuts, the uncertainty around these specific concerns will lessen. I think this will help businesses get back to work solving their customers’ problems and increase investment in capital equipment," David Normandin, CLFP, president and CEO, Wintrust Specialty Finance, said.
"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.”
Jim DeFrank, executive vice president and COO, Isuzu Finance of America, Inc., agreed.
“The Fed’s intent to lower interest rates combined with stabilizing of inflation will stimulate investment, spending and expansion.”
“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. Getting past the election should provide some clarity on the economic direction of the U.S., thus more capex investments can be made," Jeffry Elliott, CLFP, President, Huntington Equipment Finance, said.
"Lastly, onshoring will continue to promote infrastructure investment which requires capex spending to execute."
More details can be found on the Foundation’s website.