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Confidence in equipment leasing finance market at 65.1, highest level for 2 months in a row

More survey respondents predicted economic conditions to get better over the next six months (34.3 percent, up from 31.4 percent in March), but the majority (62.9 percent), thought the economy will stay about the same over the same period of time.

The Trucker News Services

4/21/2014

Confidence in the equipment leasing finance market is 65.1, remaining at the highest index level in two years for the second consecutive month, according to the April 2014 Monthly Confidence Index for the equipment finance industry.

The equipment finance sector represents $827 billion in expenditures.

Thirty-seven percent expect demand for leases and loans to fund capital expenditures to increase in the four-month period, up from 31.4 percent in March, while 60 percent believe it will stay the same, down from 62.9 the previous month.

Less executives, 28.6 percent, expect more access to capital to f und equipment acquisitions over the next four months, down from 31.4 percent in March, while 71.4 percent indicated they expect the same access to capital, up from 68.6 percent in March.

Hiring expectations were down, with 37 percent of executives expecting to hire more employees compared with 40 percent in March.

More survey respondents predicted economic conditions to get better over the next six months (34.3 percent, up from 31.4 percent in March), but the majority (62.9 percent), thought the economy will stay about the same over the same period of time.

“I believe there are many projects that were put on hold during the last quarter due to the difficult weather conditions this winter,” said Valerie Hayes Jester, president of Brandywine Capital Associates Inc. “Equipment acquisition should improve as these projects get back on track as economic conditions continue to improve and the weather turns more favorable. The concerns I have are for the increasing amount of capital that continues to enter the marketplace, bringing a downward pressure on yields.”

“It seems that the U.S. consumer is gaining confidence, which may translate into increased spending,” said Paul Menzel, president and CEO of Financial Pacific Leasing LLC.

“When this segment of our economy actually gains real traction, we will see tangible growth in GDP. The one caveat is the threat of a global event that could stall our cyclical recovery.”

The Trucker staff can be reached to comment on this article at editor@thetrucker.com.

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