The Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI), which measures the level of confidence in the US sector, has dipped slightly in September to be 59.9.

The index represents a 0.3 drop month-on-month (m-o-m) from August’s 60.2 which the index producers, the Equipment Leasing & Finance Foundation (ELFF), says reveals confidence in the equipment finance market is at a heightened level for the fourth consecutive month.

The MCI-EFI provides a qualitative assessment from key executives of the USD1.3 trillion equipment finance industry. 

The ELFF says since more than eight out of 10 US businesses, ranging from small businesses to Fortune 100 companies, use at least one form of financing for their equipment acquisitions.

Survey respondents, when assessing the next four months, believe business conditions will remain steady (52.2%, down from August’s 69.2%); 30.4% believe they will improve, a healthy increase from August’s 26.9%; 17.4% believe conditions will worsen, up sharply from August’s 3.9%.

The number of survey respondents who evaluate the US economy as “excellent” sits at 8.7% in September, steady m-o-m, with 91.3% assessing it as fair, down from 100% in August. None evaluate the US economy as poor.

The economic outlook for the US in the next six months is expected to “get better” according to 39.1% of respondents, a significant increase from August’s 23.1%; 34% believe economic conditions will worsen (up from August’s 11.5%). 

Another 30.4% believe conditions will remain the same for the next six months, down from August’s 65.4%.

One survey respondent, Daryn Lecy, chief operating officer with independent Oakmont Capital Services, correctly predicted interest rates will reduce by 0.25%, “which will be added incentive along with typically heavier Q4 purchases to drive demand higher by year end”.

Jeffry Elliott, CLFP, CEO, Elevex Capital and Equipment Leasing & Finance Association Treasurer adds: “Competing economic forces and political strategy collide to create an unusual operating environment. Some will freeze and some will take market share.”