US business borrowing for equipment falls 13% in Sept. as pandemic weigh on spending

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US business borrowing for equipment falls 13% in Sept. as pandemic weigh on spending

American businesses’ borrowings for capital investments had taken a hefty header of 13 per cent in September compared to the same time a year earlier, Washington DC-based ELFA (Equipment Leasing and Finance Association) said on Thursday, pointing towards a slowdown in business expenses amid a second wave of pandemic outbreak at large.

In point of fact, according to the ELFA report on US business borrowing for equipment that was published earlier on Thursday, the most timely indicator to the health of US businesses’ credit lines or simply the US businesses’ intend to borrow, US companies had signed up for an approximated $8.7 billion in new debts, leases and credit lines in September, down from a reading of $10 billion registered at the same time a year earlier.

Nonetheless, on a monthly basis, borrowings in September rose about 24 per cent from a month earlier, ahead of a holiday season, while a rise in core orders for US goods and services in September had also added to further gains.

US business borrowings for equipment fall in September

In tandem, downplaying the September data that had reported a perilous plunge in commercial loans in the United States, ELFA Chief Executive Ralph Petta said following the release of Thursday’s data, “ Despite the drop in September year-over-year new business, a look at the data beginning with the advent of the pandemic in February shows that the industry, in general, is holding its own.

Anecdotal evidence from some ELFA member companies indicates they are enjoying a very strong year. ” In tandem, the Washington DC-based ELFA, which reports activities of a nearly $1-trillion equipment finance sector, had also added that US business equipment debts or commercial loan approvals surged as much as 72.9 per cent in September following an August gain of 71 per cent ahead of a November 3 US Presidential election.