Columbia’s ELFA says US business borrowing for equipment tumbles 1.0%

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Columbia’s ELFA says US business borrowing for equipment tumbles 1.0%

A survey data from the US Equipment Leasing and Finance Association had unveiled late on Monday that US business borrowing for equipment, a critical indicator to future business investments, dipped 1 per cent last month compared to the same time a year earlier.

According to the Washington DC-based association, US companies had applied for about $10.3 billion in new debts alongside, leases as well as lines of credits in June. In the matter of the fact, latest ELFA data had vindicated the remarks of US Fed Chair Jerome Powell made earlier this month, while the Fed Chair was quoted saying that the US economy would likely to shrink over the second half of the year.

Apart from that, US Fed policymakers also had raised an alarming bell that the US labour market could be squeezed further deeper into the year.

ELFA says US business borrowing for equipment fall last month

Aside from that, ELFA Chief Ralph Petta said in a statement shortly after the release of the data, “Inflation continues to provide a headwind in an otherwise benign economy.

The Fed has signalled its resolve to meet these inflationary pressures by steadily increasing short-term interest rates, without throwing cold water on our post-pandemic economic recovery”. The survey of ELFA’s businesses borrowing for equipment has been based on decisions of 25 members including Bank of American Corp alongside financing affiliate of Caterpillar Inc., the world’s largest heavy equipment manufacturer, Siemens AG, Canon Inc., Dell Technologies Inc as well as Volvo AB.

Besides, ELFA’s non-profit affiliate added that its index for confidence skidded to 46.1 per cent in July, a marked decrease compared to a reading of 50.9 per cent logged in June. Nevertheless, a reading above 50.0 indicates a positive business outlook.