US business equipment loans fall 10% y/y in August, ELFA says Reuters

(Reuters) – U.S. companies borrowed 10 percent less to finance equipment investments in August compared with the year-ago period, the Equipment Leasing and Financing Association (ELFA) said on Tuesday.

New loans, leases and lines of credit closed by companies in August also fell 17 percent from $11.1 billion a month earlier.

“The Fed’s decision to begin lowering interest rates will support equipment demand, even as some companies wait for rates to fall further before investing,” said ELFA President and CEO Leigh Lytle.

The Washington trade association, which reports economic activity for the more than $1 trillion equipment finance sector, also said credit approvals for U.S. companies in August, at 76 percent, were unchanged from July.

ELFA’s not-for-profit affiliate, the Equipment Leasing & Finance Foundation, said its confidence index for September was 61.9, the highest level in two years, up from August’s index of 58.4.

A reading above 50 indicates a positive business outlook.

ELFA’s Leasing and Financing Index is based on a survey of 25 members that includes Bank of America and financing units of Caterpillar (NYSE: ), Dell Technologies (NYSE: ), Siemens AG (OTC: ), Canon Inc and Volvo AB (OTC: ).