In the latest sign of an economic boom in the United States, a survey report from Washington DC-based ELFA (Equipment Leasing and Finance Association) had unveiled on Tuesday that US business borrowings for equipment, a closely monitored proxy for future business investments, surged nearly 19 per cent in April compared to the same time a year earlier.
Aside from that, the ELFA survey data had unfurled that US Companies had borrowed about $9.8 billion for fresh capital investments in April, marking up an increase of 5 per cent on a month-on-month basis, as an economic recovery in the US gathered further tractions last month after easing of pandemic restrictions alongside an acceleration in vaccination drive.
US business borrowings for equipment rise 19% last month
In factuality, as an ELFA survey of 25 members including financial affiliates of Caterpillar Inc., Siemens AG, Dell Technologies Inc., Bank of American Corp alongside others, had reported a sharp upward spiral in US business borrowing for equipment last month, referring to a riant business landscape with growing prospects of fresh capital spending over coming months, ELFA Chief Executive Ralph Petta said following the announcement, “An increasing number of businesses are opening up, as more Americans are receiving a vaccination, traveling and otherwise trying to return to some semblance of normalcy.
What we see so far in terms of capital equipment investment is indeed encouraging as we head into the summer months. ” Equipment Leasing and Financing Association (ELFA) which reports economic activities for a nearly $1 trillion US equipment financing sector on a monthly basis, in tandem, had added that loan approvals totalled 76.3 per cent last month following a reading of 77 per cent in March.