The Equipment Leasing & Finance Foundation (the Foundation) releases the March 2021 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 67.7, an increase from the February index of 64.4, and the highest level since April 2018.
When asked about the outlook for the future, MCI-EFI survey respondent David Drury, senior vice president and head of equipment finance, Fifth Third Bank, says, “We are relatively positive on domestic and global economic activity for this year, and likely next. Despite lingering disruptions, with the tailwinds of government stimulus, central bank liquidity, excess capacity and pent-up demand, global economic growth may positively surprise in 2021.”
He continues, “The big question that could change our mind would be a return of inflation, which would change the dovish nature of most global central banks. Higher inflation would lead to higher interest rates and less of an incentive for businesses to borrow and invest.”
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