Posted December 20, 2019

Equipment Leasing and Finance Association’s Survey of Economic Activity: Monthly Leasing and Finance Index

November new business volume down 3 percent year-over-year and 23 percent month-over-month; up 5 percent year-to-date.

The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $900 billion equipment finance sector, showed overall new business volume for November was $7.8 billion, down 3 percent year-over-year from new business volume in November 2018. Volume was down 23 percent month-to-month from $10.1 billion in October. Year to date, cumulative new business volume was up 5 percent compared to 2018.

Receivables over 30 days were 1.80 percent, down from 2.00 percent the previous month and up from 1.60 percent the same period in 2018. Charge-offs were 0.43 percent, down from 0.46 percent the previous month, and up from 0.37 percent in the year-earlier period.

Credit approvals totaled 75.7 percent, down from 76.3 percent in October. Total headcount for equipment finance companies was down 2.9 percent year-over-year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in December is 56.2, an increase from the November index of 54.9.

“Reflecting an overall softening in equipment and software investment during much of the year—and particularly in Q3—November’s decline in new business volume reported by MLFI respondents was not terribly surprising. Uncertainty brought on by the prolonged trade frictions with China, which at the time of this writing appear to be significantly mitigated as a result of a recently announced Phase 1 trade deal between the two countries, was also partly responsible for this slowdown. Credit markets continue to perform well, with losses and delinquencies still in very acceptable ranges.” -- Ralph Petta, ELFA President and CEO 

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