U.S. business borrowing for equipment rises 2% in July – ELFA
(Reuters) – U.S. firms borrowed 2% extra in July to finance their investments in gear in contrast with a yr earlier, the Tools Leasing and Finance Affiliation (ELFA) stated on Monday.
The businesses signed up for $10.1 billion in new loans, leases and contours of credit score final month, in contrast with $9.9 billion a yr earlier.
“Regardless of increased rates of interest, continued provide chain disruptions, and better inflation, the gear finance trade continues to ship worth to companies which depend on it to accumulate essential capital gear to run their operations,” ELFA Chief Govt Ralph Petta stated in a press release.
ELFA, which stories financial exercise for the practically $1 trillion gear finance sector, stated credit score approvals totaled 78%, down from 78.1% in June.
The Washington-based physique’s leasing and finance index measures the quantity of economic gear financed in the USA.
The index is predicated on a survey of 25 members, together with Financial institution of America Corp, and financing associates or items of Caterpillar Inc, Dell Applied sciences Inc, Siemens AG, Canon Inc and Volvo AB.
The Tools Leasing & Finance Basis, ELFA’s non-profit affiliate, stated its confidence index in August is 50%, a rise from 46.1% in July. A studying above 50 signifies a constructive enterprise outlook.
(Reporting by Priyamvada C; Modifying by Devika Syamnath)
