Market Overview

Equipment Leasing and Finance Association's Survey of Economic Activity: Monthly Leasing and Finance Index

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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 May was $7.7 billion, up 13 percent year-over-year from new
business volume in May 2016. Volume was down 3 percent month-to-month
from $7.9 billion in April. Year to date, cumulative new business volume
was up 7 percent compared to 2016.

Receivables over 30 days were 1.40 percent, up from 1.30 percent the
previous month and up from 1.30 percent in the same period in 2016.
Charge-offs were 0.47 percent, up from 0.38 percent the previous month,
and up from 0.33 percent in the year-earlier period.

Credit approvals totaled 77 percent in May, up from 75.9 percent in
April. Total headcount for equipment finance companies was up 15.4
percent year over year, largely attributable to continued acquisition
activity at an MLFI reporting company.

Separately, the Equipment Leasing & Finance Foundation's Monthly
Confidence Index (MCI-EFI) for June is 63.5, steady with the May index
of 63.2.

ELFA
President and CEO Ralph Petta
said, "Origination volume for the
month of May continues strong second quarter performance for the
equipment finance industry. Although certain verticals and industry
sectors are performing better than others, overall demand for capital
equipment continues the positive momentum begun in the first few months
of the year. At the same time, credit quality remains in acceptable
ranges. While the data provide a rear-view mirror glimpse of industry
health, more telling will be the impact of rising interest rates, warmer
summertime weather and whether policy makers in Washington succeed in
making progress on important legislative matters that benefit the
business community."

"The current business environment is perplexing. While the U.S. economy
is experiencing the third longest expansion in history, there have not
been any sustained pockets of robust growth. Confidence levels are still
very encouraging, as businesses continue to invest and finance equipment
and related services at stronger levels than in 2016," said Adam
D. Warner, President of Key Equipment Finance
. "It is critically
important to watch all economic indicators and the Foundation-Keybridge
U.S. Equipment & Software Investment Momentum Monitor to choose which
verticals provide the best opportunity for growth with appropriate
levels of risk. With rising interest rates forecast for the remainder of
the year, we expect some margin compression relief with minimal impact
on new financing activity."

About the ELFA's MLFI-25

The MLFI-25 is the only index that reflects capex—the
volume of commercial equipment financed in the U.S.—and is released as a
complementary economic indicator the day before the U.S. Department
of Commerce
releases the durable
goods report
.

To read a detailed description and methodology of the MLFI-25, visit http://www.elfaonline.org/Data/MLFI/

About the ELFA

The Equipment Leasing and Finance Association (ELFA) is the trade
association that represents companies in the $1 trillion equipment
finance sector, which includes financial services companies and
manufacturers engaged in financing capital goods. ELFA members are the
driving force behind the growth in the commercial equipment finance
market and contribute to capital formation in the U.S. and abroad. Its
more than 575 members include independent and captive leasing and
finance companies, banks, financial services corporations,
broker/packagers and investment banks, as well as manufacturers and
service providers. ELFA has been equipping business for success for more
than 50 years. For more information, please visit www.elfaonline.org.

The Equipment Leasing & Finance Foundation is a 501c3 non-profit
organization dedicated to inspiring thoughtful innovation and
contributing to the betterment of the equipment leasing and finance
industry. Funded through charitable individual and corporate donations,
the Foundation focuses on the development of in-depth, independent
research and resources for the advancement of equipment finance industry
knowledge. Visit the Foundation online to get the most current version
of the Monthly
Confidence Index
and Foundation-Keybridge
U. S. Equipment & Software Investment Momentum Monitor
.

Follow ELFA:
Twitter: @ELFAonline
LinkedIn: http://www.linkedin.com/groups?gid=89692
Facebook:
https://www.facebook.com/ELFApage

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