The December Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI), which provides a qualitative assessment from key executives in the USD1.3 trillion equipment finance industry, dipped slightly in December to 58.3, down 1.6 points month-on-month.

The MCI-EFI is produced by the Equipment Leasing & Finance Foundation (ELFF), which states the December figure reveals “confidence in the equipment finance market remains steady at year end, and at a heightened level for the seventh consecutive month”.

The MCI-EFI has hovered in the 58 to 61 range since June’s 58.2, spiking to 61.6 in July. In April, it reached its lowest point for the year to sit at 41.9.

Looking at the next six months, 12.5% of respondents believe US economic conditions will “get better,” a decrease from 37.5% in November, while another 58.3% expect the US economy to “stay the same,” up from 41.7%; 29.2% believe economic conditions will worsen, up from 20.8% last month.

The outlook is measured with 75% of respondents to the monthly survey believing business conditions in the next four months will remain steady, up from 62.5% in November, while 12.5% of respondents believe conditions will improve and a further 12.5% believe they will worsen.

For the next four months, 20.8% of respondents believe demand for leases and loans to fund capital expenditures (capex) will increase (unchanged from November). Additionally, 75% expect demand to remain the same (up from 62.5%), and 4.2% believe demand will decline (down from 16.7% in November).

None of the respondents evaluate the current US economy as “excellent,” down from 4.2% in November with 100% assessing it as “fair,” up from 95.8% last month.

Jeffry Elliott, CEO of Elevex Capital and Equipment Leasing & Finance Association treasurer says: “The mixed economic environment will enable entrepreneurial equipment finance companies to thrive”. 

“I’m concerned about stagflation—inflation with a recession can be very troubling for any business or individual,” Elliott adds.