Economy

In September, U.S. equipment borrowings increased 11%


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(Stocksak). Among other things, U.S. companies borrowed 11% higher in September to finance equipment investment, according to Equipment Leasing and Finance Association. However, the association raised doubts about the sustainability and economic growth in light of slowdown fears.

According to ELFA, the companies signed up for $10.2 million in new loans, leases, and lines of credit last month compared to $9.2 billion a previous year. Borrowings increased by nearly 6% in January.

Hollis Bufferd, Chief Executive of Star Hill Financial LLC, stated in a statement that “despite continued challenges in supply chain, inflationary pressures, and rising interest rates”, the industry and our financial company continue to grow.

“The likelihood of Federal Reserve interest rates increasing on the horizon creates uncertainty. However, we are seeing an increase in demand for fixed rate loans and leases to support capital expenditures of our clients. Bufferd added that he is cautiously optimistic, keeping an eye on global economic disruptions.

ELFA reports on economic activity in the $1-trillion equipment finance industry. Credit approvals increased to 77.3% from 75.2% in August.

The Washington-based body’s financing and leasing index measures the amount of commercial equipment that is financed in America.

The index was compiled from a survey of 25 members including Bank of America Corp (NYSE 🙂 and financing affiliates/units of. Caterpillar Inc (NYSE -), Dell Technologies (NYSE –) Inc, Siemens AG(OTC ) Canon Inc and Volvo AB [OTC ]

The Equipment Leasing & Finance Foundation, ELFA’s non-profit affiliate, said its confidence index in October stood at 45%, compared with 48.7% in September. A reading of 50 or more indicates a positive outlook for business.

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