US business equipment borrowings up 4% in February, ELFA says
Credit quality, while still elevated year over year, showed improvement with delinquencies slowly returning to normal levels and charge-offs moving in a positive direction, ELFA CEO Leigh Lytle said.
US companies borrowed 4% more to finance equipment investments in February compared to a year ago, industry body Equipment Leasing and Finance Association (ELFA) said. Companies signed up for new loans, leases and lines of credit worth $7.9 billion in February, down 15% from a month ago.
"Credit quality, while still elevated year over year, showed improvement with delinquencies slowly returning to normal levels and charge-offs moving in a positive direction,” ELFA CEO Leigh Lytle said.
The Washington-based company, which reports economic activity for over $1-trillion equipment finance sector, said credit approvals for US companies in February came in at 76%, unchanged from the preceding month.
Its non-profit affiliate, the Equipment Leasing & Finance Foundation, said its confidence index for March stood at 55.2, up from 51.7 for February and was at its highest level since April 2022. A reading above 50 indicates a positive business outlook.
ELFA's leasing and finance index is based on a 25-member survey, including Bank of America and financing units of Caterpillar, Dell Technologies, Siemens AG, Canon Inc and Volvo AB.
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