U.S. business borrowing for equipment falls 2 percent in SeptemberStaff Writer | October 26, 2018
U.S. companies' borrowing to spend on capital investment fell 2 percent in September from a year earlier, a trade group representing capital equipment lenders said.
America ELFA's leasing and finance index measures the volume of commercial equipmen
The decline in volume was likely a result of rising diesel prices, the impact of the dollar, lack of infrastructure stimulus, rising interest rates and tariffs, said Gary Peterson, chief executive of TCF Equipment Finance, which is an ELFA member.
Washington-based ELFA, which reports economic activity for the $1 trillion equipment finance sector, said credit approvals were 75.7 percent in September, down from 76.4 percent in August.
ELFA's leasing and finance index measures the volume of commercial equipment financed in the United States. It is designed to complement the U.S. Commerce Department's durable goods orders report, which it typically precedes by a few days.
The Equipment Leasing & Finance Foundation, ELFA's non-profit affiliate, said its confidence index for October is 63.2, down from the September index of 65.5.
A reading of above 50 indicates a positive outlook. ■