US business borrowing equipment climbs 28% in January, says ELFA

by   |  VIEW 882

US business borrowing equipment climbs 28% in January, says ELFA

On Tuesday, the 25th of February 2020, adding a shimmering ray of hope for a US economy which analysts said became utterly exposed to a recession following a fast-spreading coronavirus outbreak across the globe, the Equipment Leasing and Financing Association said that the American companies’ borrowings for capital investment, a critical indicator to investors’ appetite, mounted as much as 28 per cent last month compared to the same time a year earlier, nonetheless, Wall St.

analysts had cautioned that US business borrowing would unlikely to gather momentum further over the coming months as China’s Wuhan coronavirus outbreak had massacred supply chains of a swathe of sectors ranging from electronics to consumer products to farm goods, while luxury goods had been the heaviest hit thus far.

Nonetheless, according to ELFA’s (Equipment Leasing and Finance Association) Tuesday’s (February 25th) statement, American companies had signed up for a stark total of $9.2 billion in new debts, credit lines and leases in January, up from a prior figure of $7.2 billion clocked a year earlier, however, on a monthly basis, US business borrowings for capital investment fell nearly 29 per cent.

Meanwhile, downplaying impacts of a gruesome EU-US trade debate alongside a fast-spreading coronavirus outbreak that prompted millions of people to lock them up inside their homes, the ELFA Chief Executive Officer, Ralph Petta said on Tuesday (February 25th), “Underlying fundamentals in the U.S.

economy — strong job growth, low inflation, low interest rates, continuation of a bull equities market and solid business confidence — all add up to a growing demand for productive equipment necessary to keep businesses expanding and profitable. ”