Equipment borrowing by US companies increases 9% in July

Aug 23 (Reuters) – US corporate borrowing for capital investments rose 9% in July from a year earlier, the Equipment Leasing and Finance Association (ELFA) said on Monday.

The companies signed $ 9.9 billion in new loans, leases and lines of credit last month, up from $ 9.1 billion a year earlier. However, borrowing was down 5% from the previous month.

“Despite supply chain disruptions in some sectors of the economy, signs of inflation and the emergence of the Delta coronavirus, July’s new business volume in the equipment finance industry is significant.” ELFA CEO Ralph Petta said in a statement.

Petta also cited a pickup in consumer spending and slowing unemployment as reasons for optimism about equipment investment and industry performance for the second half of the year.

Washington-based ELFA, which reports economic activity for the equipment finance industry of nearly $ 1 trillion, said credit approvals totaled 76.5 percent, up from 76.7 percent in June.

The ELFA 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, CIT Group Inc and subsidiaries or finance units of Caterpillar Inc, Dell Technologies Inc, Siemens AG, Canon Inc and Volvo AB.

The Foundation for Equipment Leasing and Financing, the nonprofit subsidiary of ELFA, reported a monthly confidence index of 66.6 in August, down from 72.9 in July.

A reading above 50 indicates a positive business outlook. (Reporting by Nathan Gomes in Bangalore; Editing by Ramakrishnan M.)

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