The Equipment Leasing and Finance Foundation on Nov. 21 observed that confidence in the equipment finance market is 67.5, up from its October index of 61.8, and the highest level since August 2021. When asked about the outlook for the future, survey respondent Charles Jones, Senior Vice President, 1stEquipment Finance, Inc., said, “Businesses still need equipment. Political uncertainty has had an impact and should resolve itself. With the election behind us, businesses will need to continue to operate and look to grow. Calmer heads seem to be prevailing and the industry is coming back. Delinquency has hopefully leveled, and lenders are licking their wounds and looking forward.”
November 2024 survey results addressed these factors:
- Business conditions: When asked to assess their business conditions over the next four months, 43.3 percent of the executives responding said they believe business conditions will improve over the next four months, an increase from 37.9 percent in October. 50 percent believe business conditions will remain the same over the next four months, down from 51.7 percent the previous month. 6.7 percent believe business conditions will worsen, down from 10.3 percent in October.
- Capex demand: 3 percent of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 44.8 percent in October. 44.8 percent believe demand will “remain the same” during the same four-month time period, up from 41.4 percent the previous month. 6.9 percent believe demand will decline, a decrease from 13.8 percent in October.
- Access to capital:9 percent of the respondents expect more access to capital to fund equipment acquisitions over the next four months, up from 27.6 percent in October. 62.1 percent of executives indicate they expect the “same” access to capital to fund business, down from 72.4 percent last month. None expect “less” access to capital, unchanged from the previous month.
- Employment: When asked, 44.8 percent of the executives report they expect to hire more employees over the next four months, an increase from 24.1 percent in October. 48.3 percent expect no change in headcount over the next four months, down from 65.5 percent last month. 6.9 percent expect to hire fewer employees, down from 10.3 percent in October.
- S. Economy: None of the leadership evaluate the current U.S. economy as “excellent,” down from 6.9 percent the previous month. 96.7 percent evaluate the economy as “fair,” up from 93.1 percent in October. 3.3 percent evaluate it as “poor,” an increase from none the previous month.
- Economic outlook: 60 percent of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, up from 37.9 percent in October. 36.7 percent indicate they believe the U.S. economy will “stay the same” over the next six months, down from 51.7 percent last month. 3.3 percent believe economic conditions in the U.S. will worsen over the next six months, a decrease from 10.3 percent the previous month.
- Business development spending: In November, 36.7 percent of respondents indicate they believe their company will increase spending on business development activities during the next six months, up from 34.5 percent the previous month. 56.7 percent believe there will be “no change” in business development spending, an increase from 55.2 percent in October. 6.7 percent believe there will be a decrease in spending, down from 10.3 percent last month.
