(Reuters) - U.S. companies borrowed 7% more in April to finance their investments in equipment compared to a year earlier, the Equipment Leasing and Finance Association (ELFA) said on Monday, as firms ramp up production to meet demand.
The companies signed up for $10.5 billion in new loans, leases and lines of credit, compared with $9.3 billion a year earlier.
"Soaring energy prices and inflation are headwinds confronting the industry as we move into the summer months," said Ralph Petta, ELFA's chief executive officer, in a statement.
ELFA, which reports economic activity for the nearly $1-trillion equipment finance sector, said credit approvals totaled 77.4%, down from 78.3% in March.
Washington-based 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 (NYSE:BAC), and financing affiliates or units of Caterpillar Inc (NYSE:CAT), Dell Technologies (NYSE:DELL) Inc, Siemens AG (OTC:SIEGY), Canon Inc and Volvo AB (OTC:VLVLY).
The Equipment Leasing and Finance Foundation, ELFA's non-profit affiliate, said its confidence index for May was at 49.6, down from 56.1 in April. A reading above 50 indicates a positive business outlook.