The Equipment Leasing & Finance Foundation has released the November 2021 Monthly Confidence Index for the Equipment Leasing Industry (MCI-EFI). The index presents a qualitative assessment of both current business conditions and expectations for the future, as reported by key executives in the $ 900 billion equipment finance industry. Overall, confidence in the equipment finance market is 64.6, an increase from the October index of 61.1.
When asked about the outlook for the future, Dave Fate, responding to MCI-EFI, Managing Director of Stonebriar Commercial Finance, said: showed a number of interesting data points. Strong corporate earnings continue to pull the equity markets. The current rise in inflation rates is alarming and seems to be with us for some time. Persistent problems related to the shortage of skilled and unskilled labor are the number one concern of most of our customers. Supply chain issues are causing real disruption and appear to have no viable plan to mitigate them. The remainder of Q4 and Q1 will be very interesting as we go through the year-end close in our industry and the Christmas season. “
Results of the November 2021 survey:
- The overall MCI-EFI index is 64.6, an increase from the October index of 61.1.
- When asked to rate their business conditions over the next four months, 34.6% of executives surveyed said they believed business conditions would improve in the next four months, compared to 25.9%. % in October. 46.2% believe that economic conditions will remain the same over the next four months, compared to 70.4% the previous month. 19.2% believe that the economic situation will deteriorate, against 3.7% in October.
- 42.3% of respondents believe demand for leases and loans to finance capital spending (capex) will increase over the next four months, up from 22.2% in October. Fifty percent believe demand will “stay the same” over the same four-month period, down from 74.1% the month before. 7.7% think demand will drop, compared to 3.7% in October.
- 26.9% of those polled expect increased access to capital to finance equipment acquisitions over the next four months, up from 14.8% in October. In addition, 73.1% of executives say they expect the “same” access to capital to finance their operations, down from 85.2% last month. None expects “less” access to capital, unchanged from the previous month.
- When asked, 53.9% of executives say they expect to hire more people in the next four months, up from 40.7% in October. In addition, 46.2% do not expect any change in headcount in the next four months, down from 59.3% last month. None expect to hire fewer employees, unchanged from October.
- 15.4% of executives rate the current US economy as “excellent”, up from 7.4% the previous month. In addition, 80.8% of executives believe that the current US economy is “fair”, against 81.5% in October. And 3.9% rate it as “bad”, against 11.1% last month.
- 23.1% of those polled believe U.S. economic conditions will improve over the next six months, up from 22.2% in October. What’s more, 57.7% say they think the US economy will “stay the same” for the next six months, down from 63% from last month. And 19.2% believe economic conditions in the United States will worsen over the next six months, up from 14.8% the month before.
- In November, 42.3% of those polled said they believed their company would increase spending on business development activities over the next six months, down slightly from 42.9% the month before. In addition, 57.7% believe there will be “no change” in business development spending, up slightly from 57.1% in October. None believe there will be a decrease in spending, unchanged from last month.