Columbia’s ELFA says US business equipment borrowing grew by 9 per cent in December
by SOURAV D | VIEW 334
Late on Tuesday, Columbia-based US industry body Equipment Leasing and Finance Association (ELFA) had said in a statement that the US business borrowing for equipment rose by 9 per cent in December despite a persistent rise in inflationary pressure alongside a stabbing upsurge in interest rates last year. According to data from industry body ELFA, the US business borrowing for equipment, a closely watched indicator to future business activities across the US economy which has reportedly been clinging on a right rope at the brink of a recession, grew by nearly a double-digit figure, as a wide array of businesses ranging from blue-whale corporates to small-scale restaurants appeared to be pushing their additional expenses to end-consumers, eventually scalping a large chuck of savings from common US households.
ELFA says business borrowing for equipment rise sharply last month
On top of that, ELFA added that the US businesses had signed up for a $12.9 billion in new loans, leases alongside lines of credits in December, up about a 9 per cent compared to the same time a year earlier when US business borrowing for equipment stood at an $11.8 billion a year.
Apart from that, cumulative borrowing spurred up by as much as 6 per cent over the past twelve months through December 2022, compared to the same time a year earlier. Meanwhile, addressing to a deep discontent over the US Federal Reserve’s rate-hike path, President of AP Equipment Financing’s President, Chris Lerma said, “Not knowing yet the full impact of the Fed's series of rapid rate increases on the economy, I believe many companies will start the year with more focus on credit quality and spreads versus origination volume”.