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U.S. business borrowing for equipment falls 9% in October: ELFA

Published 11/20/2020, 03:02 PM
Updated 11/20/2020, 03:05 PM
© Reuters.

(Reuters) - U.S. companies' borrowings for capital investments fell 9% in October from a year earlier, the Equipment Leasing and Finance Association (ELFA) said on Friday.

The companies signed up for $9.2 billion in new loans, leases and lines of credit last month. Borrowings in October rose 6% from the previous month.

"The equipment finance industry shows resilience in the face of a worsening health pandemic and uneven economic performance in the U.S," ELFA Chief Executive Officer Ralph Petta said.

"Hopefully, this struggle to get back to a sense of normalcy will not be overtaken by a double dip recession caused by worsening COVID-19 outbreaks reported in some states around the nation."

Washington-based ELFA, which reports economic activity for the nearly $1-trillion equipment finance sector, said credit approvals fell to 72.3% in October from 72.9% in September.

ELFA's leasing and finance index measures the volume of commercial equipment financed in the United States.

The index is based on a survey of 25 members, including Bank of America Corp (N:BAC), CIT Group Inc (N:CIT) and the financing affiliates or units of Caterpillar Inc (N:CAT), Dell Technologies Inc (N:DELL), Siemens AG (DE:SIEGn), Canon Inc and Volvo AB (ST:VOLVb).

The Equipment Leasing and Finance Foundation, ELFA's non-profit affiliate, reported monthly confidence index of 56.1 in November, up from the October reading of 55.

A reading of above 50 indicates a positive business outlook.

 

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