Borrowing For Equipment For U.S. Businesses Hikes 14% In August

FILE PHOTO: Cranes and other construction equipment are seen towering over Las Vegas hotels at CONEXPO-CON/AGG convention at the Las Vegas Convention Center in Las Vegas, Nevada, U.S. March 9, 2017. REUTERS/David Becker

In August, a trade group that represents capital equipment lenders reported, borrowing by companies in the U.S. spent on capital investments increased 14 percent from the same period last year. The companies came on board for $8.9 billion in new loans, leases and lines of credit last month, increased from $7.8 billion a year earlier, the Equipment Leasing and Finance Association (ELFA) reported.

“Fundamentals in the U.S. economy are favorable for capex investment by both large and small borrowers, and a number of asset classes and equipment verticals are benefiting,” ELFA CEO Ralph Petta stated.

“Steadily rising interest rates, a spate of disagreements with our trading partners and a powerful hurricane has seemingly little, to no, effect on the U.S. economy and its continued vitality.”

ELFA reports economic activity for the $1 trillion equipment finance sector, added credit approvals amounted for 76.4 percent last month, which is up from July that reported 76.2 percent.

ELFA’s leasing and finance index measures the volume of commercial equipment financed in the U.S. It is was created to be a compliment the U.S. Commerce Department’s durable goods orders report, which it usually leads by a couple of days.

ELFA’s index is based on a survey of 25 members like Bank of America Corp, BB&T Corp, CIT Group Inc and the financing affiliates or units of Caterpillar Inc, Deere & Co, Verizon Communications Inc, Siemens AG, Canon Inc, and Volvo AB.

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