Columbia’s ELFA says US business borrowings for equipment rise 6.0% in September

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Columbia’s ELFA says US business borrowings for equipment rise 6.0% in September

On Monday, Equipment Leasing and Finance Association (ELFA), the Washington DC-headquartered non-profit organization that reports economic activity of nearly a $1-trillion equipment financing sector, had issued a statement saying that US business borrowing for equipment, a closely monitored indicator to future investments, surged 6.0 per cent in September compared to the same time a year earlier, while American companies’ borrowings jumped 8.0 per cent on a month-on-month basis in September, remarking a jubilant US business landscape ahead into the fourth quarter of 2021.

Nonetheless, citing concerns over a persistent rise in supply constrains alongside a robust build-up in price pressures, ELFA Chief Executive Ralph Petta said in a statement, “Supply chain disruptions and inflation concerns continue, with the Fed poised to gradually ease its asset purchases in the near term.

For now, liquidity is abundant and businesses are acquiring the productive equipment necessary to respond to customer demand in a variety of market sectors.

US business borrowings for equipment climb 6.0 per cent in September

According to ELFA, an approximated $9.2 billion had been issued in new loans, leases alongside lines of credits last month compared to a total of $8.7 billion in August, while credit approvals remained unchanged at 76.3 per cent.

Aside from that, ELFA’s index for business borrowing for equipment which is based on a survey of 25 member entities including Caterpillar Inc., Dell Technologies Inc., Siemens AG, Volvo AB alongside Bank of America Corp among others, gauges the volume of commercial equipment financing in the United States on a monthly basis, hence detailing an incisive look into the health of future investment policies among US business owners.