Equipment Finance Industry Confidence Up Third Consecutive Month in January

For business conditions, 57.1% of executives expect improvement over the next four months, unchanged from December, while 38.1% believe conditions will remain steady, an increase from 32.1%. Only 4.8% foresee worsening conditions, a drop from 10.7%.

Regarding demand for capital expenditures, 47.6% of respondents anticipate increased demand for leases and loans, down from 53.6% in December. An equal percentage, 47.6%, expect demand to remain the same, up from 42.9%, while 4.8% foresee a decline, up slightly from 3.6%.

In terms of access to capital, 28.6% of respondents expect greater availability for funding equipment acquisitions, consistent with the previous month. Meanwhile, 71.4% predict no change in access, and none expect a decrease.

Employment trends show that 47.6% of executives plan to hire more employees, matching December’s figure. Additionally, 52.4% expect no change in headcount, an increase from 42.9%, and none anticipate workforce reductions, a significant shift from the 10.7% who did in December.

Assessments of the U.S. economy revealed that 9.5% of respondents rate current conditions as “excellent,” up from 7.1%. Most respondents, 85.7%, consider the economy “fair,” down from 89.3%, while 4.8% describe it as “poor,” up slightly from 3.6%.

Looking ahead, 52.4% believe economic conditions will improve over the next six months, a slight decrease from 53.6%, while 47.6% expect conditions to remain stable, up from 35.7%. None foresee a decline, a notable change from 10.7% in December.

Finally, when it comes to business development spending, 38.1% of respondents anticipate increased investment, a decrease from 46.4% in December. Meanwhile, 61.9% expect spending to remain unchanged, up from 50%, and no respondents predict a reduction, compared to 3.6% the previous month.