Equipment finance market confidence up to index of 61.7
The Equipment Leasing & Finance Foundation released the March 2012 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) on March 23.
According to the report, overall, confidence in the equipment finance market is 61.7, up from the February index of 59.6, indicating industry participants are optimistic despite concerns that external factors, including gas prices and the upcoming elections, may have on the market.
“I still remain optimistic, but it seems that increasing gas prices, looming elections, and lack of comfort with future government regulation have created a rather sluggish first quarter as far as the small business marketplace is concerned,” Valerie Jester, president, Brandywine Capital Associates Inc. and an MCI survey respondent, said when asked about the outlook for the future. “We had hoped to see sustained momentum from strong fourth quarter activity, but it has yet to appear.”
According to the Equipment Leasing & Finance Foundation, the March 2012 survey results are as follows:
- The overall MCI-EFI is 61.7, an increase from the February index of 59.6.
- When asked to assess business conditions during the next four months, 28.9 percent of executives responding said they believe business conditions will improve over the next four months, up from 23.5 percent in February. 71.1 percent of respondents believe business conditions will remain the same over the next four months, down from 73.5 percent in February. No one responded they believe business conditions will worsen, a decrease from 2.9 percent in February.
- 34.2 percent of survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, an increase from 26.5 percent in February. 65.8 percent believe demand will “remain the same” during the same four-month time period, down from 67.6 percent the previous month. No one responded they believe demand will decline, down from 5.9 percent who believed so in February.
- 21.1 percent of executives expect more access to capital to fund equipment acquisitions over the next four months, up from 20.6 percent in February. 78.9 percent of survey respondents indicate they expect the “same” access to capital to fund business, a decrease from 79.4 percent the previous month. No survey respondents expect “less” access to capital, unchanged from February.
- When asked, 28.9 percent of the executives reported they expect to hire more employees over the next four months, up from 26.5 percent in February. 63.2 percent expect no change in headcount over the next four months, a decrease from 70.6 percent last month, while 7.9 percent expect fewer employees, up from 2.9 percent in February.
MORE FROM Economics
- Sydney uses water curtains to alert drivers to stop (VIDEO)805 Views
- Obama signs memorandum to expedite infrastructure projects574 Views
- Florida’s Red Light Camera Game: G R E E N orange R E D286 Views
- Big four cellphone companies jointly launch anti-texting campaign266 Views
- Acceptance of connected vehicles depends on cost, LaHood says263 Views