In the ELFA’s August Sentiment Index, 89.3% of respondents believe business conditions will remain the same over the next four months. (clash)
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Confidence in the outlook for the equipment financing market rose in August, with far fewer business leaders expecting weaker conditions, according to Equipment financing and leasing corporation.
Foundation based in Washington, D.C Monthly Confidence Index for August 2023, released on August 17, came in at 50.4, compared to 46.4 in July. The index provides a measure of current CEO sentiment and future outlook for the $1 trillion equipment finance sector.
The foundation said about 3.6% of executives said they believed business conditions would improve over the next four months, down from 7.7% in July.
However, 89.3% of respondents believe business conditions will remain the same over the next four months, up from 65.4% in the previous month, while 7.1% believe conditions will get worse, compared to 26.9% in July.
Equipment financing industry confidence improves again in August, @employee Thursday’s headlines blast from the daily enews @employee – https://t.co/N8PwfZUV2Q # Avaneoz #equipmentfinance # ideas # banking
EquipmentFA.com (EquipmentFA) August 17, 2023
About 3.6% of executives rated the current US economy as “excellent,” the foundation said, relatively unchanged from 3.9% the previous month. About 85.7% of the leadership rate the current US economy as “fair,” up from 80.8% in July, and 10.7% rate it as “weak,” down month-over-month from 15.4%.
About 10.7% of respondents believe US economic conditions will improve over the next six months, down from 11.5% in July, but 60.7% said the US economy will “stay the same” over the next six months, up from 53.9% in July. About 28.6% believe that US economic conditions will worsen over the next six months, down from 34.6% in the previous month.
This sentiment is supported by more positive federal data. The US Census Bureau said on August 16 that homebuilding rose 3.9%. Compared to June, it increased by 5.9% compared to the same month last year. This strength is built on single-family home starts, which are up 6.7% compared to July 2022.
In addition, the The Federal Reserve announced on August 16 that total industrial production for July increased by 1%. after decreasing in the previous two months. The Fed said industrial production also rose 0.5% in July, auto and parts production jumped 5.2%, while factory output elsewhere rose 0.1%.