The Equipment Leasing & Finance Foundation (the Foundation) releases the May 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector. Overall, confidence in the equipment finance market is 49.6, a decrease from the April index of 56.1.
When asked about the outlook for the future, MCI-EFI survey respondent David Normandin, CLFP, president and CEO, Wintrust Specialty Finance, says in a press release from the Foundation, “Adapting to change is what the equipment leasing industry is all about. Our current rising rate environment will be good for the overall financial health of equipment finance companies as obligors adapt to the new world rate order and margin is built back into the business. I do think this will create challenges for many who may not have a long-term stable capital structure.”
“Supply chain issues continue to have an impact on lease commencements with dates getting pushed with delivery delays. We are seeing an increase in renewals and over term rentals,” says Michael Romanowski, president, Farm Credit Leasing, in the press release.
When asked to assess their business conditions over the next four months, 6.9% of executives responding said they believe business conditions will improve over the next four months, a decrease from 14.8% in April. 62.1% believe business conditions will remain the same over the next four months, down from 63% the previous month. 31% believe business conditions will worsen, an increase from 22.2% in April.
Read the entire press release at www.leasefoundation.org
