US commercial equipment borrowing grows 4% in August – ELFA

US commercial equipment borrowing grows 4% in August – ELFA

(Reuters) – US companies borrowed 4 percent more in August to fund their investment in equipment than a year earlier, industrial company Elva said on Friday, while raising doubts about the sustainability of that growth amid fears of a slowdown.

The companies signed up for $8.8 billion in new loans, leases and lines of credit last month, compared to $8.5 billion a year earlier, according to the Equipment Leasing and Finance Association (ELFA). Loans are up 5% compared to January.

β€œWith the Fed’s recent jump of 75 basis points in short-term interest rates, and the potential for a hard landing, time will tell if β€” and to what extent β€” business owners continue to grow and invest in equipment,” said Elfa CEO Ralph Petta. In a statement.

ELFA, which reports economic activity for the nearly $1 trillion equipment finance sector, said total credit approvals were 75.2%, down from 78% in July.

The Washington-based agency’s Leasing and Financing Index measures the volume of commercial equipment financed in the United States.

The index is based on a survey of 25 members, including Bank of America Corp (NYSE:), funding subsidiaries or units Larva Inc (NYSE :), Dell Technologies (NYSE :), Siemens AG (OTC :), Canon Inc, Volvo AB (OTC :).

Equipment Leasing and Finance Corporation, a non-profit affiliate of ELFA, said its confidence index in September was 48.7%, compared to 50% in August. A reading above 50 indicates a positive business outlook.

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