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) has released the June 2024 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI), revealing a steady confidence level among key executives in the $1 trillion equipment finance sector. The overall confidence index stands at 50.2, closely matching the May index of 50.7.
David Normandin, President and CEO of Wintrust Specialty Finance, commented on the industry's outlook, saying, “The stress the industry is experiencing in small business lending continues with elevated bankruptcy, delinquency, and a softening of credit quality. It is important to remember during these times that well-positioned businesses actually grow, take share of wallet, and expand. Our industry is well positioned to help continue the success of these businesses, as well as help those struggling through a rough time in the economy. I am optimistic that in a couple of years we will look back and recognize the positive impact we were able to have on the economy and the small business community.”
June 2024 Survey Results:
The overall MCI-EFI stands at 50.2, slightly down from 50.7 in May.
Business Conditions:
11.5% of executives expect improved business conditions over the next four months, a slight increase from 11.1% in May.
76.9% anticipate conditions will remain the same, down from 77.8% the previous month.
11.5% predict worsening conditions, nearly unchanged from May.
Demand for Leases and Loans:
7.4% expect increased demand for capital expenditure (capex) funding over the next four months, down from 11.1% in May.
77.8% believe demand will remain steady, a decrease from 81.5% the previous month.
14.8% foresee a decline in demand, up from 7.4% in May.
Access to Capital:
19.2% expect better access to capital for equipment acquisitions, up from 14.8% in May.
73.1% anticipate the same level of access, down from 77.8% last month.
7.7% predict less access, nearly unchanged from the previous month.
Hiring Expectations:
25.9% plan to hire more employees over the next four months, up from 22.2% in May.
66.6% expect no change in headcount, down from 74.1% last month.
7.4% anticipate hiring fewer employees, up from 3.7% in May.
Economic Evaluation:
3.9% rate the current U.S. economy as “excellent,” an increase from zero in the previous month.
76.9% consider the economy “fair,” down from 85.2% in May.
19.2% view it as “poor,” up from 14.8% last month.
Economic Outlook:
14.8% expect U.S. economic conditions to improve over the next six months, up from 7.4% in May.
48.2% believe conditions will remain the same, down from 63% last month.
37% predict worsening conditions, an increase from 29.6% the previous month.
Business Development Spending:
14.8% expect to increase spending on business development over the next six months, up from 11.1% the previous month.
77.8% anticipate no change in spending, down from 81.5% in May.
7.4% foresee a decrease in spending, unchanged from last month.
These findings reflect a stable yet cautious sentiment within the equipment finance industry, with executives balancing concerns over current economic pressures against a hopeful outlook for future growth and stability.