U.S. business equipment borrowings up 4% in August – ELFA

The skyline is seen in Manhattan, New York City, USA on August 21, 2021. REUTERS/Andrew Kelly

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Sept 23 (Reuters) – U.S. companies borrowed 4 percent more in August compared with a year earlier, industry body ELFA said on Friday, amid concerns over the economic slowdown. sustainability has been questioned.

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

“With the Fed’s latest hike in short-term interest rates by 75 basis points, and the prospect of a hard landing, time will tell if — and to what extent — these business owners continue to grow and invest in equipment,” ELFA CEO Laura Alfpetta said in a statement.

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ELFA, which reported economic activity in the nearly $1 trillion equipment finance sector, said credit approvals totaled 75.2 percent, down from 78 percent in July.

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

The index is based on a survey of 25 members, including the financing affiliates or divisions of Bank of America, Caterpillar Inc (CAT.N), Dell Technologies (DELL.N), Siemens AG, Canon Inc and Volvo SA (VOLVb). . stone).

The Equipment Leasing and Finance Foundation, ELFA’s nonprofit affiliate, said its confidence index stood at 48.7% in September, compared with 50% in August. A reading above 50 indicates a positive business outlook.

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Reporting by Kannaki Deka in Bengaluru; Editing by Vinay Dwivedi

Our Standard: The Thomson Reuters Trust Principles.

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