American businesses significantly increased their equipment financing activities in February, with borrowing jumping 14.2% compared to the same period last year, according to data released Monday by the Equipment Leasing and Finance Association.
The surge was primarily driven by heightened activity from independent financing providers, the Washington-based trade organization reported. The association monitors economic trends across the equipment finance industry, which exceeds $1 trillion in value, by surveying 25 member companies including Bank of America and financing divisions of major corporations like Caterpillar, Dell Technologies, Siemens AG, Canon and Volvo AB.
February saw businesses sign $11 billion worth of new financing agreements, credit lines and leases on a seasonally adjusted basis, though this represented a 4.7% drop from January levels. Small-ticket financing volume, considered a crucial indicator of equipment demand and overall economic health, totaled $4.4 billion – down 14.7% from the previous month but still exceeding the 12-month average of $3.5 billion.
ELFA President and CEO Leigh Lytle noted that the survey data was collected prior to recent geopolitical tensions involving Iran and the Federal Reserve’s March meeting, suggesting these events “could cause more bumps in the first half” of the year. The organization’s monthly confidence index dropped to 61 in March from February’s reading of 67.6, reflecting growing uncertainty in the sector.
