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 $1 trillion equipment finance sector, showed their overall new business volume for July was $9.9 billion, down 2 percent year-over-year from new business volume in July 2022, according to the press release. The association notes that volume was down 9 percent from $10.9 billion in June. Year-to-date, cumulative new business volume was up 1.3 percent compared to 2022.
The press release notes that receivables over 30 days were 2.3 percent, up from 1.8 percent the previous month and up from 1.6 percent in the same period in 2022. Charge-offs were 0.32 percent, down from 0.37 percent the previous month and up from 0.18 percent in the year-earlier period. Credit approvals totaled 75.3 percent, down from 76.1 percent in June. Total headcount for equipment finance companies was down 2.1 percent year-over-year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in August is 50.4, an increase from the July index of 46.4, the association notes.
“In the current relatively high interest rate environment in which the industry finds itself this summer, new business volume is holding up pretty well for the month of July. However, compared to the same period last year, respondents to the MLFI are reporting some softness. This coincides with expectations by economists that overall investment in equipment and software will slow down in the second half of 2023,” said Ralph Petta, president and chief executive officer at ELFA.
