Companies signed $8.8 billion worth of new loans, leases and lines of credit last month, up from $8.5 billion a year earlier, according to the Equipment Leasing and Finance Association (ELFA). Borrowings increased by 5% compared to January.
“With the Fed’s latest 75 basis point hike in short-term interest rates and the prospect of a hard landing, time will tell if — and to what extent — these same business owners continue to develop and invest in equipment,” ELFA chief executive Ralph Petta said in a statement.
ELFA, which reports economic activity in the nearly $1 trillion equipment finance industry, said credit approvals reached 75.2%, down from 78% in July. .
The Washington-based organization’s Lease 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, and subsidiaries or financing units of Caterpillar Inc, Dell Technologies Inc, Siemens AG, Canon Inc and Volvo AB.
The Equipment Leasing & Finance Foundation, ELFA’s non-profit affiliate, said its confidence index in September stood at 48.7%, down from 50% in August. A reading above 50 indicates a positive trading outlook.