Dec 20 (Reuters) – U.S. companies borrowed 9% more to finance their equipment investments in November from a year earlier, industry body Equipment Leasing and Finance Association (ELFA) said on Tuesday.
The companies signed up for $8.6 billion in new loans, leases and lines of credit last month, compared with $7.9 billion a year earlier, according to ELFA. Borrowings were up nearly 6% from January.
“Rising interest rates seem to have little or no effect on origination volume in November,” ELFA CEO Ralph Petta said in a statement.
“Labor markets are stable, inflation woes appear to be abating, consumers are spending, and businesses continue to expand and grow: a recipe for stable growth by providers of equipment financing,” Petta added.
ELFA, which reports economic activity for the nearly $1-trillion equipment finance sector, said credit approvals totaled 77.7%, slightly above the October level.
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 (BAC.N) and its financing affiliates, and units of Caterpillar Inc (CAT.N), Dell Technologies Inc (DELL.N), Siemens AG (SIEGn.DE), Canon Inc and Volvo AB (VOLVb.ST).
ELFA’s non-profit affiliate, Equipment Leasing & Finance Foundation, said the confidence index in December stood at 45.9, compared with 43.7 in November. A reading above 50 indicates a positive business outlook.
Reporting by Priyamvada C in Bengaluru; Editing by Shinjini Ganguli
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