July 23, 2020 / 7:07 PM / 13 days ago

U.S. business borrowing for equipment falls 10% in June: ELFA

(Reuters) - U.S. companies’ borrowings for capital investments fell about 10% in June from a year earlier, the Equipment Leasing and Finance Association (ELFA) said on Thursday.

The companies signed up for $8.9 billion in new loans, leases and lines of credit last month, down from $9.9 billion a year earlier. Borrowings in June, however, rose 33% from the previous month.

Despite the sequential rise in volumes, it remains to be seen whether this trend will continue as the summer progresses, ELFA Chief Executive Officer Ralph Petta said.

Washington-based ELFA, which reports economic activity for the nearly $1-trillion equipment finance sector, said credit approvals totaled 71.5% in June, up from 71.0% in May.

    ELFA’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), CIT Group Inc (CIT.N) and the financing affiliates or units of Caterpillar Inc (CAT.N), Dell Technologies Inc (DELL.N), Siemens AG (SIEGn.DE), Canon Inc and Volvo AB (VOLVb.ST).

    The Equipment Leasing and Finance Foundation, ELFA’s non-profit affiliate, reported monthly confidence index of 45.3 in July, almost in line with the May reading of 45.8.

    A reading of above 50 indicates a positive business outlook.

Reporting by Ashwini Raj in Bengaluru; Editing by Aditya Soni

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