Jul. 24, 2008 at 10:33am

Equipment leasing sees jump

The Equipment Leasing and Finance Association's Monthly Leasing and Finance Index, which reports economic activity for the $650 billion equipment finance sector, showed overall new business volume for the second quarter increased 3.2 percent when compared to the same period 2007. 

The index is the only measure that reflects levels of equipment financed in the U.S. economy. According to the June data, originations month-to-month increased by 16.7 percent to $8.4 billion. Respondents' portfolio performance was mixed:  receivables in the less-than-30 day category were 97.1 percent in June, up nominally from the prior month. Conversely, charge-offs reached their highest point since January 2006, at  0.88 percent, and are running nearly double the level experienced during the same month in the previous year.
 
"The (index) indicates some softening in the equipment finance originations as compared to same period in 2007 and an up tick in charge offs. That said, the second quarter ended with originations up 3.2 percent year over year after a tepid first quarter, making the year-to-date flat," said Kenneth E. Bentsen, Jr., ELFA president. "Delinquencies are holding steady and a slight increase in charge-offs notwithstanding, would indicate that investment in capital goods has at the very least held its own in an otherwise troubled economic environment." 

Posted in Banking/Financial Services, BE Daily, Manufacturing/Trade/Transportation, Workforce by Steve Dunkelberger | Email Steve

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