U.S. business borrowing for equipment falls 6% in December: ELFA By Reuters

© Reuters.

(Reuters) – U.S. companies’ borrowings for capital investments fell about 6% in December from a year earlier, the Equipment Leasing and Finance Association (ELFA) said on Monday.

Companies signed up for $12.1 billion in new loans, leases and lines of credit last month, down from $12.9 billion a year earlier. Borrowings in December, however, rose 66% from the previous month.

ELFA Chief Executive Officer Ralph Petta said most equipment finance sector observers would consider a single-digit decline in year-over-year new business volume tolerable, given the optimism around new U.S. stimulus measures and COVID-19 vaccine distribution.

Washington-based ELFA, which reports economic activity for the nearly $1-trillion equipment finance sector, said credit approvals rose to 75.2% in December from 70.4% in November.

ELFA’s leasing and finance index measures the volume of commercial equipment financed in the United States.

The index is based on a survey of 25 members, including Bank of America Corp (NYSE:), CIT Group (NYSE:) Inc and the financing affiliates or units of Caterpillar Inc (NYSE:), Dell Technologies (NYSE:) Inc, Siemens AG (OTC:), Canon Inc and Volvo AB (OTC:).

The Equipment Leasing and Finance Foundation, ELFA’s non-profit affiliate, reported monthly confidence index of 59.6% in January, unchanged from December.

A reading of above 50 indicates a positive business outlook.

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.