The Equipment Leasing & Finance Foundation’s December 2020 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) showed overall confidence in the equipment finance market is 59.7, an increase from the November index of 56.1. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector.
When asked about the outlook for the future, MCI-EFI survey respondent Paul Tyczkowski, senior vice president finance, LEAF Commercial Capital Inc., said, “While the COVID crisis continues to have significant impacts on businesses as we close out the year, there’s reason for cautious optimism now that the distribution of a highly effective vaccine is underway. Assuming distribution occurs as planned, I’m hopeful for a steady return to at least some level of normalcy in our lives and the economy during 2021.”
SHARE December 18, 2020
An index measuring confidence among executives in the equipment leasing and financing industry inched up in December, advancing to 59.7 from 56.1 in November. The December 2020 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) is published by the Equipment Leasing & Finance Foundation.
The Foundation also released its latest Covid-19 Impact Survey, measuring the responses of 47 executives. Half of the respondents expect the default rate will be greater in 2020 than in 2019, down from 54 percent in November.
“Given the rising Covid rates, I would expect a temporary slowdown in activity in the short term,” said Impact Survey respondent Vincent Belcastro, Group Head Syndications, Element Fleet Management, an independent financing company. “Medium term, and depending on monetary and tax policy with the new Biden administration, could exhibit a downturn and short recession. I believe in the long term ou
SHARE December 16, 2020
Annual growth in equipment and software investment will outpace overall GDP growth in 2021, according to a report from Equipment Leasing & Finance Foundation. Its 2021 Equipment Leasing & Finance U.S. Economic Outlook calls for investment to grow by 7.8 percent, compared to GDP growth expectations of 4.7 percent.
“This update, while reflecting widely disparate performance in various segments of the economy, indicates the worst of the economic downturn appears to be in the rearview mirror although that does not mean the road ahead is clear,” said Scott Thacker, Foundation chair and CEO of Ivory Consulting, in a prepared statement. “Equipment and software investment surged to an annualized rate of 47 percent in Q3 after an unprecedented 28 percent decline in Q2. In Q3, investment levels in 11 of the 12 equipment verticals that the Foundation monitors improved and nine experienced double or triple-digit growth. Prospects
Forecast also expects 4.7% GDP growth despite uneven economic recovery in the face of the pandemic.
December 16, 2020
Equipment and software investment growth fared better than overall GDP growth in 2020 as businesses invested to adapt to the COVID-19 pandemic, and growth should remain well into positive territory in the beginning of 2021. Annual equipment and software investment growth of 7.8% is forecast for 2021. Annual U.S. GDP growth for 2021 is forecast at 4.7%, according to the 2021 Equipment Leasing & Finance U.S. Economic Outlook released by the Equipment Leasing & Finance Foundation.
Scott Thacker, foundation chair and CEO of Ivory Consulting Corporation, said, “This update, while reflecting widely disparate performance in various segments of the economy, indicates the worst of the economic downturn appears to be in the rearview mirror although that does not mean the road ahead is clear.