In what could be viewed as a vivid illustration of a bankable US business landscape in a near term outlook, Washington DC-based Equipment Leasing and Finance Association (ELFA) said in a statement on Tuesday that US business borrowing for equipment, a closely monitored indicator to future investments, soared as much as 8.0 per cent in November on a year-on-year basis.
On top of that, latest upbeat data from ELFA came forth as a roaring US economy appears to be heading towards a robust year-end following a comparatively dour third-quarter. Nevertheless, according to latest ELFA report, American firms had applied for a stark upsum of $7.9 billion in new loans, lines of credits alongside leases on November, about 8 per cent up compared to a reading of $7.3 billion logged at the same time a year earlier.
Nonetheless, net borrowings had tumbled 26 per cent from a month earlier, as supply chain disruptions alongside a rapidly spreading Omicron variant seemingly had weighed heavily on investors’ morale.
US business borrowings for equipment rise 8% in November
In tandem, ELFA, that states fiscal activities in a nearly $1 trillion worth of US business equipment sector, had added that US lenders had approved a 77.2 per cent of all credit applications lodged last month, marginally down from a 78.0 per cent in October.
Meanwhile, citing concerns over a rapid build-up inflationary pressure, ELFA Chief Executive Officer Ralph Petta said in a statement, “Supply chain disruptions continue to plague an otherwise strong economy, creating inflationary pressures that are a concern for many Americans.
The hope is that the Fed (U.S. Federal Reserve) does not choke off the recovery (of the economy) in its efforts to control further inflation”.