U.S. companies borrowed 4% less to finance equipment investments in June than a year ago, industry body Equipment Leasing and Finance Association (ELFA) said on Tuesday.
New loans, leases, and lines of credit signed up by companies in June were down 2% from $10.20 billion a month ago.
ELFA, which reports economic activity for the more than $1 trillion equipment finance sector, said credit approvals for U.S. companies came in at 75%, unchanged from May.
“A pullback in origination activity at banks caused overall new business volume to dip in June after double-digit growth in the previous two months,” ELFA President and CEO Leigh Lytle said.
The Equipment Leasing & Finance Foundation, ELFA’s non-profit affiliate, said its confidence index for July stood at 50.7, up from 50.2 in June. A reading above 50 indicates a positive business outlook.
ELFA’s leasing and finance index is based on a 25-member survey, including Bank of America (NYSE: BAC) and financing units of Caterpillar (NYSE: CAT), Dell Technologies (NYSE: DELL), Siemens AG, Canon Inc., and Volvo AB.
(Source: Reuters)
Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market.
