Overall new business volume for September was up 31 percent on a month-over-month basis in the equipment leasing industry, according to the latest Equipment Leasing and Finance Association (ELFA) Monthly Leasing and Finance Index.
The index, which covers activity among 25 companies in the equipment finance sector, showed business volume was $9.4 billion in September. When compared to the same month last year, this total represented 21 percent growth.
“All [Monthly Leasing and Finance Index] performance metrics for September indicate a favorable environment for business investment,” ELFA President and CEO William Sutton stated in a press release. “Strong originations and solid portfolio performance, together with a slight uptick in hiring, all point to a robust equipment finance sector as we move into the final quarter of the year. We will keep our eye on these positive indicators as the U.S. economy continues to react to geopolitical events, a worrisome global economic outlook and volatile U.S. equity markets.”
Data also showed positive developments from the Equipment Leasing & Finance Foundation’s Monthly Confidence Index. The index’s October reading was 60.4, up from 60.2 during the previous month. Survey respondents reported growing or consistent demand.
Continuing the trend
The numbers for September are even more impressive when you consider growth during the month prior.
The ELFA Monthly Leasing and Finance Index for August showed a 13 percent increase in business volume from the same time in 2013, which itself followed an 8 percent year-over-year increase during July.
Among the reasons for this trend cited by Sutton were GDP growth, an improving labor market, more consumer spending and low interest rates.
With the economy continuing to improve and equipment leasing continuing to offer business owners plenty of benefits, it’s likely this positive trend will continue.