US business borrowing for capital investment drops 3% in November

in usbusiness •  5 years ago 

Borrowings for capital investments in US companies fell 3% in November compared to last year s figures, according to the Equipment Leasing and Finance Association (ELFA).

US companies signed up for leases, loans, and lines of credit up to $7.8 billion, down from last year s $8 billion. Borrowings dropped 23% when compared from last month s.

 Uncertainty brought on by the prolonged trade frictions with China was partly responsible for this slowdown,  Ralph Petta, ELFA Chief Executive Officer said. Credit markets were performing well, as losses and delinquencies were in adequate ranges.

ELFA said that credit approvals amounted to 75.7% in November, a little lower than October s 76.3%.

The leasing and finance index of ELSA measures the volume of commercial equipment in the US. It is built to complement the US Commerce Department s report on durable goods orders.

This index is formed under the survey of 25 members, which includes Bank of America Corp, CIT Group Inc, BB T Corp, and the financing affiliates or units of Dell Technologies Inc, Caterpillar Inc, Siemens AG, Volvo AB, Canon Inc.

ELFA s non-profit affiliate, Equipment Leasing and Finance Foundation reported a confidence index of 56.2 in December, a little higher than November s 54.9 index.

A reading above 50 denotes positive business outlook.

https://dowmarkets.com/en/news/us-business-borrowing-for-capital-investment-drops-3-in-november

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