The Equipment Leasing & Finance Foundation (the Foundation) released the October 2022 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $1 trillion equipment finance sector. Overall, confidence in the equipment finance market is 45, a decrease from the September index of 48.7.

When asked about the outlook for the future, MCI-EFI survey respondent David Normandin, CLFP, President and CEO, Wintrust Specialty Finance, said, "I am optimistic about our industry and our customers finding solutions to manage challenging economic conditions. As the rate of change increases, I think that our industry is well-positioned to adapt and continue to find ways to win.”  

October 2022 Survey Results

The overall MCI-EFI is 45, a decrease from the September index of 48.7.

• When asked to assess their business conditions over the next four months, none of the executives responding said they believe business conditions will improve over the next four months, a decrease from 3.6 percent in September. In addition, 62.5 percent believe business conditions will remain the same over the next four months, down from 75 percent the previous month; 37.5 percent believe business conditions will worsen, an increase from 21.4 percent in September.
• 8.3 percent of the survey respondents believe demand for leases and loans to fund capital expenditures (CAPEX) will increase over the next four months, a decrease from 10.7 percent in September; 66.7 percent believe demand will “remain the same” during the same four-month time period, a decrease from 71.4 percent the previous month; 25 percent believe demand will decline, up from 17.9 percent in September.
• 4.2 percent of the respondents expect more access to capital to fund equipment acquisitions over the next four months, down from 14.3 percent in September; 87.5 percent of executives indicate they expect the “same” access to capital to fund business, an increase from 71.4 percent last month; 8.3 percent expect “less” access to capital, down from 14.3 percent the previous month.
• When asked, 29.2 percent of the executives report they expect to hire more employees over the next four months, up from 28.6 percent in September; 66.7 percent expect no change in headcount over the next four months, an increase from 64.3 percent last month; 4.2 percent expect to hire fewer employees, down from 7.1 percent in September.
• 8.3 percent of the leadership evaluate the current U.S. economy as “excellent,” an increase from 7.1 percent the previous month; 66.7 percent of the leadership evaluate the current U.S. economy as “fair,” down from 71.4 percent in September; 25 percent evaluate it as “poor,” an increase from 21.4 percent last month.
• None of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, a decrease from 7.1 percent in September; 41.7 percent indicate they believe the U.S. economy will “stay the same” over the next six months, an increase from 39.3 percent last month; 58.3 percent believe economic conditions in the U.S. will worsen over the next six months, an increase from 53.6 percent the previous month.
• In October, 25 percent of respondents indicate they believe their company will increase spending on business development activities during the next six months, down from 28.6 percent the previous month; 70.8 percent believe there will be “no change” in business development spending, down from 71.4 percent in September; 4.2 percent believe there will be a decrease in spending, an increase from none last month.

October 2022 MCI-EFI Survey Comment from Industry Executive Leadership

Independent, Small Ticket

“Until the mid-term elections are over, the economy is not likely to see much change.” – James D. Jenks, CEO, Global Finance and Leasing Services, LLC