(Reuters) – U.S. companies borrowed 2% more in July to finance their investments in equipment compared with a year earlier, the Equipment Leasing and Finance Association (ELFA) said on Monday.
The companies signed up for $10.1 billion in new loans, leases and lines of credit last month, compared with $9.9 billion a year earlier.
“Despite higher interest rates, continued supply chain disruptions, and higher inflation, the equipment finance industry continues to deliver value to businesses which rely on it to acquire necessary capital equipment to run their operations,” ELFA Chief Executive Ralph Petta said in a statement.
ELFA, which reports economic activity for the nearly $1 trillion equipment finance sector, said credit approvals totaled 78%, down from 78.1% in June.
The Washington-based body’s leasing and finance 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, and financing affiliates or units of Caterpillar Inc, Dell Technologies Inc, Siemens AG, Canon Inc and Volvo AB.
The Equipment Leasing & Finance Foundation, ELFA’s non-profit affiliate, said its confidence index in August is 50%, an increase from 46.1% in July. A reading above 50 indicates a positive business outlook.
(Reporting by Priyamvada C; Editing by Devika Syamnath)
