This March Monthly Confidence index is at a three-year high of 67.7, up from 64.4 in February.
Washington, DC – The Equipment Leasing & Finance Foundation (the Foundation) releases the March 2021 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector. Overall, confidence in the equipment finance market is 67.7, an increase from the February index of 64.4, and the highest level since April 2018.
When asked about the outlook for the future, MCI-EFI survey respondent David Drury, Senior Vice President and Head of Equipment Finance, Fifth Third Bank, said, “We are relatively positive on domestic and global economic activity for this year, and likely next. Despite lingering disruptions, with the tailwinds of government stimulus, central bank liquidity, excess capacity, and pent-up demand, global economic growth may positively surprise in 2021. The big question that could change our mind would be a return of inflation, which would change the dovish nature of most global central banks. Higher inflation would lead to higher interest rates and less of an incentive for businesses to borrow and invest.”
The overall MCI-EFI is 67.7, an increase from the February index of 64.4.
Bank, Middle Ticket
“The prospect of a broadly-vaccinated population should further push open state and local economies.” Adam Warner, President, Key Equipment Finance
Independent, Middle Ticket
“The vaccine rollout is now progressing quickly, and while some predict we won’t see the end of this pandemic until year end, I believe everyone that wants a vaccine will be able to receive one by early May. This bodes well for the return of strong economic activity that will almost certainly boost capital spending significantly.” Bruce J. Winter, President, FSG Capital, Inc.
Independent, Large Ticket
“As COVID restrictions lift and companies have a clearer vision of future demand, it will help companies make more informed capex decisions.” Vincent Belcastro, Group Head Syndications, Element Fleet Management
The COVID-19 Impact Survey of the Equipment Finance Industry will be reported on a quarterly basis in 2021. Additionally, questions will be revised to reflect longer term effects of the pandemic’s impact on equipment finance companies going forward. If you wish to participate on behalf of your company in 2021, please contact Stephanie Fisher at sfisher@leasefoundation.org to determine eligibility for inclusion in the survey.
ABOUT THE MCI
Why an MCI-EFI?
Confidence in the U.S. economy and the capital markets is a critical driver to the equipment finance industry. Throughout history, when confidence increases, consumers and businesses are more apt to acquire more consumer goods, equipment, and durables, and invest at prevailing prices. When confidence decreases, spending and risk-taking tend to fall. Investors are said to be confident when the news about the future is good and stock prices are rising.
Who participates in the MCI-EFI?
The respondents are comprised of a wide cross-section of industry executives, including large-ticket, middle-market and small-ticket banks, independents, and captive equipment finance companies. The MCI-EFI uses the same pool of 50 organization leaders to respond monthly to ensure the survey’s integrity. Since the same organizations provide the data from month to month, the results constitute a consistent barometer of the industry’s confidence.
How is the MCI-EFI designed?
The survey consists of seven questions and an area for comments, asking the respondents’ opinions about the following:
How may I access the MCI-EFI?
Survey results are posted on the Foundation website, https://www.leasefoundation.org/industry-resources/monthly-confidence-index/, included in the Foundation Forecast eNewsletter, and included in press releases. Survey respondent demographics and additional information about the MCI are also available at the link above.
JOIN THE CONVERSATION
Twitter: https://twitter.com/LeaseFoundation
Facebook: https://www.facebook.com/LeaseFoundation
LinkedIn: https://www.linkedin.com/company/10989281/
Instagram: https://www.instagram.com/leasefoundation/
Vimeo: https://vimeo.com/elffchannel
ABOUT THE FOUNDATION
The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that propels the equipment finance sector—and its people—forward through industry-specific knowledge, intelligence, and programs that contribute to industry innovation, individual careers, and the overall betterment of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. Learn more at www.leasefoundation.org.
Media Contact: Kelli Nienaber, knienaber@leasefoundation.org
Tune in to hear from Chris Brown, Vice President of Sales at CADDi, a leading manufacturing solutions provider. We delve into Chris’ role of expanding the reach of CADDi Drawer which uses advanced AI to centralize and analyze essential production data to help manufacturers improve efficiency and quality.