US Business Equipment Borrowings Decline Over 7% Year-Over-Year in February, Reports ELFA

U.S. companies borrowed 7.4% less to finance equipment investments in February compared to the same month last year, according to the Equipment Leasing and Finance Association (ELFA).

New loans, leases, and lines of credit reached $9.7 billion in February, down from $9.8 billion in the same period last year. ELFA President and CEO Leigh Lytle noted that demand for equipment had returned to healthy levels following fluctuations in financing activity at banks over recent months.

The trade association, which tracks economic activity in the over $1 trillion equipment finance sector, reported that credit approvals for U.S. companies remained steady at 75% in February compared to the previous year.

The Equipment Leasing & Finance Foundation, ELFA's non-profit affiliate, indicated that its confidence index for March fell to 58.1, reflecting a slight increase in pessimism among respondents regarding conditions over the next four months.

The ELFA CapEx Finance Index of leasing and finance activity is based on a survey of 25 members, including Bank of America and the financing units of Caterpillar, Dell Technologies, Siemens AG, Canon, and Volvo AB.