Equipment borrowing by US companies increases 6% in September

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(Reuters) – US companies increased their borrowing for capital investments in September by 6% from a year earlier, the Equipment Leasing and Finance Association (ELFA) said on Monday.

The companies signed $ 9.2 billion in new loans, leases and lines of credit last month, up from $ 8.7 billion a year earlier. Borrowings increased by 8% compared to August.

“Supply chain disruptions and inflation concerns continue, with the Fed poised to gradually ease its purchases of short-term assets,” said Ralph Petta, CEO of ELFA, in a statement. communicated.

“At the moment, liquidity is plentiful and companies are acquiring the productive equipment necessary to meet customer demand in various sectors of the market,” he said.

Washington-based ELFA, which reports economic activity for the equipment finance industry of nearly $ 1 trillion, said credit approvals totaled 76.3 percent, unchanged from August.

The ELFA Leasing and Financing 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, CIT Group Inc and subsidiaries or finance units of Caterpillar Inc, Dell Technologies Inc, Siemens AG, Canon Inc and Volvo AB.

The Foundation for Equipment Leasing and Financing, the nonprofit subsidiary of ELFA, reported monthly confidence of 61.1% in October, compared to 60.5% in September in its index. . A reading above 50 indicates a positive business outlook.

(Reporting by Nathan Gomes in Bangalore; Editing by Krishna Chandra Eluri)


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