June leasing and finance index released
Equipment Leasing and Finance Association’s monthly leasing and finance index new business volume down 4 percent year over year, Up 4.1 percent year to date.
The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), a survey of economic activity from 25 companies representing a cross section of the $1 trillion equipment finance sector, reports that in June:
- New business volume (NBV) was $10 billion, down 4 percent from June 2023.
- Month over month, NBV was down 2 percent from $10.2 billion in May 2024.
- Year to date, cumulative NBV was up 4.1 percent compared to 2023.
Additional findings include:
- Receivables over 30 days were 2.0 percent, down from 2.3 percent the previous month and up from 1.8 percent in the same period in 2023.
- Charge-offs were 0.5 percent, up from 0.4 percent the previous month and up from 0.4 percent in the year-earlier period.
- Credit approvals totaled 75 percent, unchanged for the second consecutive month.
- Total headcount for equipment finance companies was down 0.9 percent year-over-year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index in July is 50.7, steady with the June index of 50.2.
“Our latest MFLI report shows modest cooling in the equipment leasing and finance industry. A pullback in origination activity at banks caused overall new business volume to dip in June after double-digit growth in the previous two months. That said, portfolio quality remained consistent, fluctuating within a narrow range as receivables improved and losses dipped. We expect financial conditions to remain solid in 2024 as recent inflation data leads the Fed to begin easing borrowing costs in September. That would boost equipment demand, which in turn should bolster economy-wide investment through the end of the year,” says Leigh Lytle, ELFA president and CEO.
“The current moment, while not simple, is a very interesting one for Amur and other well-capitalized independents. Banks have been so dominant in our industry for so long, but with banks looking to lend less, we expect to see continued opportunities to be the go-to source of financing in the marketplace. Given our 28-year track record and time-tested platform, we are proud that we have been able to stay consistent and reliable with our partners regardless of market fluctuations,“ says Todd Wainwright, senior vice president, Head of Commerce & Strategic Partnerships at Amur.
About ELFA’s MLFI-25
The MLFI-25 is the only near-real-time index that reflects capex, or the volume of commercial equipment financed in the U.S. It is released monthly from Washington, D.C., one day before the U.S. Department of Commerce's durable goods report. This financial indicator complements reports like the Institute for Supply Management Index, providing a comprehensive view of productive assets in the U.S. economy—equipment produced, acquired and financed. The MLFI-25 consists of two years of business activity data from 25 participating companies. For more details, including methodology and participants, visit www.elfaonline.org/knowledge-hub/mlfi.
PRO CONTRACTOR RENTALS MAGAZINE
Pro Contractor Rentals provides information of value to rental centers who focus time, resources and attention on meeting the demands of construction contractors and other equipment rental customers.
