Washington, DC, October 21, 2013 –- The Equipment Leasing & Finance Foundation (the Foundation) releases the October 2013 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today. Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $725 billion equipment finance sector. Overall, confidence in the equipment finance market is 54.0, a decline from the September index of 61.3, demonstrating the negative impact of the federal government’s budget response on an otherwise steady industry outlook.
When asked about the outlook for the future, MCI survey respondent Valerie Hayes Jester, President, Brandywine Capital Associates, Inc., said, “The future of the industry remains optimistic. My larger concern is for the future of our country and the inability of our government to lead. Ultimately, the stalemate in Washington will have a negative effect on our economy in the short run. My hope is that we can get small business back on track and investing again in equipment in 2014.”
October 2013 Survey Results:
The overall MCI-EFI is 54.0, a decline from the September index of 61.3.
October 2013 MCI Survey Comments from Industry Executive Leadership:
Bank, Small Ticket
“Our industry is poised to help fuel economic expansion. Unfortunately, the circus in the U.S. Congress is holding back, if not threatening, the recovery we have prepared for.” Paul Menzel, President & CEO, Financial Pacific Leasing, LLC
Bank, Middle Ticket
“With the continuing dysfunction in Washington due to the lack of any effective leadership, the short-term outlook for the equipment finance industry is very clouded. Demand for financing will likely continue with the see-saw pattern we have experienced over the last several years.” Thomas Jaschik, President, BB&T Equipment Finance
Bank, Middle Ticket
“The dysfunction in D.C. is now at a critical stage. If the government doesn’t learn how to deal with these issues in a more timely manner, we will lose the confidence gained over the last year causing further weakness in the economy.” Kenneth Collins, CEO, Susquehanna Commercial Finance, Inc.
Why an MCI-EFI?
Confidence in the U.S. economy and the capital markets is a critical driver to the equipment finance industry. Throughout history, when confidence increases, consumers and businesses are more apt to acquire more consumer goods, equipment and durables, and invest at prevailing prices. When confidence decreases, spending and risk-taking tend to fall. Investors are said to be confident when the news about the future is good and stock prices are rising.
Who participates in the MCI-EFI?
The respondents are comprised of a wide cross section of industry executives, including large-ticket, middle-market and small-ticket banks, independents and captive equipment finance companies. The MCI-EFI uses the same pool of 50 organization leaders to respond monthly to ensure the survey’s integrity. Since the same organizations provide the data from month to month, the results constitute a consistent barometer of the industry’s confidence.
How is the MCI-EFI designed?
The survey consists of seven questions and an area for comments, asking the respondents’ opinions about the following:
How may I access the MCI-EFI?
Survey results are posted on the Foundation website, http://www.leasefoundation.org/IndRsrcs/MCI/, included in the Foundation Forecast newsletter and included in press releases. Survey respondent demographics and additional information about the MCI are also available at the link above.