Orginally posted on Equipmentfa.com: The Equipment Leasing & Finance Foundation (the Foundation) released the July 2012 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $628 billion equipment finance sector. Overall, confidence in the equipment finance market is 51.5, up from the June index of 48.5, and reflects continuing concern over external economic factors and regulatory and political uncertainty.
When asked about the outlook for the future, MCI survey respondent Russell D. Nelson, President, Farm Credit Leasing Services Corporation, said, “Continued volatility/uncertainty at home and abroad may inhibit planned/needed capital expenditures during the next six months, but low interest rates and tax incentives will enable our industry to generate modest increases in asset volume and profitability through the remainder of 2012.” He added, “Improving credit quality, stable earnings, and demand for innovative/creative lease and loan products should position our industry for improved growth in 2013 and beyond.”
July 2012 Survey Results:
The overall MCI-EFI is 51.5, up from the June index of 48.5.
July 2012 MCI Survey Comments from Industry Executive Leadership: Depending on the market segment they represent, executives have differing points of view on the current and future outlook for the industry.
Independent, Micro Ticket
“The long view is bullish for our industry. In the short run, however, I believe we will see sluggish demand unless and until the consumer side of our economy feels more secure about their financial well being and starts to spend more freely.” Paul Menzel, President and CEO, Financial Pacific Leasing, LLC
Independent, Small Ticket
“Businesses are showing some reluctance to expand or invest in new capital equipment due to the extremely slow economic recovery. It seems like we are in a wait-and-see mode.” David T. Schaefer, President, Orion First Financial, LLC
Bank, Middle Ticket
“For 2012, I would expect the industry to finish slightly above 2011 levels. However, long-term prosperity for equipment finance and the economy in general will hinge upon the outcome of the November election.” Anonymous
Survey results are posted on the Foundation website, http://www.leasefoundation.org/IndRsrcs/MCI/, included in the Foundation Forecast newsletter and included in press releases. Survey respondent demographics and additional information about the MCI are also available at the link above.