ELFA Releases Survey of Economic Activity

The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity for the $628 billion equipment finance sector, showed overall new business volume for May was $6.2 billion, up 10.7% from volume of $5.6 billion in the same period in 2011. Volume was up 1.6% from the previous month. Year-to-date cumulative new business volume is up 16%.

Receivables over 30 days were unchanged from April at 2.7%, and declined when compared to the same period in 2011. Charge-offs decreased for the second consecutive month to 0.5%, down from 0.6% the previous month, and down by 37.5% compared to the same period last year.

Credit approvals increased to 78% in May from 76% in April. Seventy-five percent of participating organizations reported submitting more transactions for approval during May, down slightly from 76% in April.

Finally, total head count for equipment finance companies decreased slightly from the previous month, and was down 2.8% year over year. Supplemental data show that construction continued to lead the under-performing sectors, followed by small and medium-sized enterprises.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for June is 48.5, down from the May index of 59.2, reflecting growing concern over the European debt crisis, U.S. unemployment and regulatory and political uncertainty.