U.S. business borrowing for equipment jumps 14 pct in August - ELFA
Sept 25 (Reuters) - Borrowing by U.S. companies to spend on
capital investments rose 14 percent in August from a year
earlier, a trade group representing capital equipment lenders
The companies signed up for $8.9 billion in new loans,
leases and lines of credit last month, up from $7.8 billion a
year earlier, the Equipment Leasing and Finance Association
"Fundamentals in the U.S. economy are favorable for capex
investment by both large and small borrowers, and a number of
asset classes and equipment verticals are benefiting," ELFA
Chief Executive Officer Ralph Petta said in a statement.
"Steadily rising interest rates, a spate of disagreements
with our trading partners and a powerful hurricane have
seemingly little, to no, effect on the U.S. economy and its
Washington-based ELFA, which reports economic activity for
the $1 trillion equipment finance sector, said credit approvals
totaled 76.4 percent in August, up slightly from 76.2 percent in
ELFA's leasing and finance index measures the volume of
commercial equipment financed in the United States. It is
designed to complement the U.S. Commerce Department's durable
goods orders report, which it typically precedes by a few days.
ELFA's index is based on a survey of 25 members that include
Bank of America Corp, BB&T Corp, CIT Group Inc
and the financing affiliates or units of Caterpillar Inc
, Deere & Co, Verizon Communications Inc,
Siemens AG, Canon Inc and Volvo AB
The Equipment Leasing & Finance Foundation, ELFA's
non-profit affiliate, said its confidence index for September is
65.5, up from the August index of 60.7. A reading of above 50
indicates a positive outlook.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Maju
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