US business borrowing for equipment rises 2 per cent in December

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US business borrowing for equipment rises 2 per cent in December

On Friday, the 24th of January 2020, the US Equipment Leasing and Finance Association (ELFA) had depicted an upbeat picture for US factory activity and agricultural investment, as US business borrowing for equipment posted a rise of nearly 2 per cent in December compared to the same time a year earlier that had been well in line with a gain in US PMI (Purchasing Managers’ Index) for manufacturing sector, which had managed to report a gain over the past couple of months after falling for three straight months in a row.

Apart from that, according to the ELFA business borrowing for equipment data released on Friday (January 24th), US companies had filed for $12.9 billion in new loans, leases alongside credit lines last month, up from a figure of $12.7 billion at the same time a year earlier, while the figure had witnessed an intransigent boost on a monthly basis, growing nearly 65 per cent higher last month than that of November.

Nonetheless, despite a robust growth in business borrowing of equipment, a critical indicator to US farm goods and manufacturing sector investment, citing an elevated level of stress in businesses amid a slowdown in global economic growth, Washington-based ELFA’s Chief Executive Ralph Petta said on Friday (January 24th), “Whether recent relaxation of nagging trade tensions between the U.S.

and several of its trading partners improves conditions in the industrial and agricultural sectors of the U.S. economy remains to be seen as we move deeper into the new year. ”