US business equipment borrowings rise more than 12% in March, ELFA says
27/04/2026 20:00
April 27 (Reuters) - U.S. companies' borrowings to finance equipment purchases rose in March compared to a year earlier, despite a surge in energy prices and the upcoming leadership transition at the Federal Reserve, the Equipment Leasing and Finance Association said on Monday. The Washington-based trade association, which tracks over $1 trillion in the equipment finance sector, bases its report 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 7751.T and Volvo AB VOLVb.ST. New loans, leases and lines of credit signed up by companies in March climbed 12.5% year-over-year to $10.8 billion on a seasonally adjusted basis, but fell 1.8% from the previous month. Small-ticket volume, a key indicator of equipment demand and broader economic conditions, was down 17.7% from February at $3.4 billion and below its 12-month trailing average of $3.6 billion. ELFA President and CEO Leigh Lytle said the full economic impact of the conflict in the Middle East has yet to appear in the data, and she expects some deterioration in demand heading into the summer. ELFA's monthly confidence index stood at 54.6 in April, down from 61 in March and the lowest level since May 2025. Jerome Powell's term as Fed chair ends on May 15, with former governor Kevin Warsh nominated as his successor. Changes at the Fed can affect interest rates and credit conditions, in turn shaping business demand for capital spending and equipment financing. (Reporting by Megavarshini G. Somasundaram in Bengaluru; Editing by Vijay Kishore) ((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com;))