August 22, 2010 US companies borrowed 2 percent more in July to finance their investment in equipment, the Equipment Leasing and Finance Association (ELFA) said Monday.
The companies signed up for $10.1 billion in new loans, leases and lines of credit last month, compared with $9.9 billion a year ago.
“Despite high interest rates, supply chain disruptions and high inflation, the equipment finance industry continues to provide value to the businesses that rely on it to access the capital equipment they need to operate,” LFA CEO Ralph Petta said in a statement.
ELFA, which reports economic activity in the nearly $1 trillion equipment finance sector, said loan approvals fell to 78%, down from 78.1% in June.
The Washington-based body’s Leasing and Financing Index measures the amount of commercial instruments financed in the United States.
The index is based on a survey of 25 members, including Bank of America Corp (BAC.N) and financial partners or units Caterpillar Inc (CAT.N), Dell Technologies Inc (DELL.N), Siemens AG (SIEGn). DE), Canon Inc and Volvo AB (VOLVb.ST).
The Equipment Leasing & Finance Foundation, LFA’s non-profit affiliate, has a confidence index of 50% in August, an increase from 46.1% in July. A reading above 50 indicates a positive business outlook.
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Reporting by Priyamvada C; Editing by Devika Syamnath
Our Standards: The Thomson Reuters Trust Principles.
