US business equipment borrowings flat year-on-year in November - ELFA
20/12/2023 20:00
Dec 20 (Reuters) -
U.S. companies borrowing rate remained flat in November
compared to a year ago, industry body Equipment Leasing and
Finance Association (ELFA) said on Wednesday.
Companies signed up for new loans, leases and lines of
credit worth $8.3 billion in November, down 19% from $10.4
billion a month ago.
"Both losses and delinquencies show more acceptable levels,
and no further rate increases by the Fed for the foreseeable
future is more good news," ELFA President and CEO Leigh Lytle
said.
ELFA, which reports economic activity for the nearly
$1-trillion equipment finance sector, also said credit approvals
for U.S. companies in November remained unchanged from a month
earlier at 76%.
So far this year, cumulative new business volume was up 4.1%
compared to 2022, according to the survey.
The Equipment Leasing & Finance Foundation, ELFA's
non-profit affiliate, said its confidence index in December
stood at 42.5, marginally lower from 42.8 in November. A reading
above 50 indicates a positive business outlook.
Washington-based ELFA's leasing and finance index is based
on a survey of 25 members, including Bank of America BAC.N and
financing units of Caterpillar CAT.N , Dell Technologies
DELL.N , Siemens AG SIEGn.DE , Canon Inc 7751.T and Volvo AB
VOLVb.ST .
(Reporting by Abhinav Parmar in Bengaluru; Editing by Tasim
Zahid)
((Abhinav.Parmar@thomsonreuters.com;))