The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $1 trillion equipment finance sector, showed their overall new business volume for August was $9.2 billion, up 3 percent year-over-year from new business volume in August 2018.

Volume was down 2 percent month-to-month from $9.4 billion in July. Year to date, cumulative new business volume was up 3 percent compared to 2018.

Receivables over 30 days were 2.0 percent, unchanged from the previous month and up from 1.90 percent the same period in 2018. Charge-offs were 0.42 percent, up from 0.37 percent the previous month, and up from 0.29 in the year-earlier period.

Credit approvals totaled 76.6 percent, up from 75.7 percent in July. Total headcount for equipment finance companies was down 2.1 percent year-over-year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in September is 54.7, down from the August index of 58.9.

“New business volume reported by member-respondents grew modestly in August, as the U.S. economy continues to perform well. A variety of economic indicators all point to a continued pattern of sustained, moderate growth in many sectors within the equipment finance industry,” said ELFA President and CEO Ralph Petta.

Richard E. Barry, President, Merchants Bank Equipment Finance, said, “August monthly and year-to-date new origination volume activity demonstrates a consistent increase over last year's monthly and year-to-date results. Credit quality continues to be actively monitored as month-over-month charge-offs rose slightly. The August MLFI-25 points to the continued desire of business owners to invest in efficient and productive capital equipment solutions for their enterprises.”