Tag Archives: capital investment

ELFA Says Confidence and Capital Investment on the Rise

Economy, ,
Illustration from Pixabay
Illustration from Pixabay

According to the Equipment Leasing and Finance Association (ELFA) there was a 20 percent rise in the amount US companies borrowed for capital investment in the month of December, compared to the same time one year ago.

In addition, there was a 90 percent rise in new loans, leases and lines of credit since last month, to the amount of $12.9 billion.

ELFA Chief Executive William Sutton said in a statement that, “…the equipment finance industry appears poised for the breakout performance industry observers have been waiting for.”

ELFA is a Washington-based trade association that reports on economic data for the equipment finance sector, a $903 billion industry. Credit approvals were done in December compared to November, from 79.1 percent in November to 78.6 percent in December.

The non-profit affiliate of ELFA, the Equipment Leasing & Finance Foundation, said its confidence index went up in January to 66.1 compared to 63.4 in the previous month. According to the foundation any figure over 50 indicates a positive view of the economic future.

Capital Business Investment Up in January

Economy, ,

In the largest increase in over a year, the month of January saw US companies purchasing machinery and factory goods at a rate of increase of 7.2 percent over December’s figures. This number, despite fears of tax hikes and sequestration (budget cuts), registers among economists as a sign of increasing confidence in the US economy.

Increased capital purchases, especially long after the holidays have passed, bodes well for the economy, as it’s a sign that production is pushing ahead, with a hoped-for increase in jobs and decrease in unemployment.

Aircraft and defense orders are not included in these figures. If sequestration causes the Defense Department to slash its budget, then this sector could adversely affect the economy as a whole. Because orders for aircraft fell in January the total factory orders in January was really down by 2 percent.