The March 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) dropped from 61.8 in February to 58.2 in March, according to the Equipment Leasing & Finance Foundation.
“Supply chain issues continue to hamper equipment availability,” according to Michael Romanowski, President, Farm Credit Leasing. “The Ukraine conflict has enhanced volatility and is contributing to an already unsettled environment.”
The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $900 billion equipment finance sector.
Highlights from the March 2022 survey
One in five (21.4 percent) respondents said that they believe business conditions will improve over the next four months, a decrease from 24.1 percent in February. More than a quarter (28.6 percent) said business conditions will worsen, an increase from 6.9 percent in February.
One in four (25 percent) of respondents said that they believe demand for leases and loans to fund capital expenditures will increase over the next four months, up from 24.1 percent in February. None believe demand will decline, down from 3.5 percent in February.
Some 21.4 percent expect more access to capital to fund equipment acquisitions over the next four months, up from 17.2 percent in February.
Only 3.6 percent described the current U.S. economy as “excellent,” a decrease from 10.3 percent the previous month. Some 85.7 percent evaluate the economy as “fair,” down from 86.2 percent, and 10.7 percent evaluate it as “poor,” an increase from 3.5 percent last month.
About one in 10 (7.1 percent) said that they believe that U.S. economic conditions will get “better” over the next six months, a decrease from 24.1 percent in February. About one in three (35.7 percent) believe economic conditions in the U.S. will worsen over the next six months, an increase from 17.2 percent the previous month.