Last month, we reported on the Equipment Leasing and Finance Associations’ monthly activity report. It was pretty ugly. The group posted their February report this morning, and while it didn’t match January’s dire numbers, it still showed regression.
“New business volume for February declined three percent when compared to the same period in 2009,” the group reports. On a monthly basis, volume was down 6%, which apparently is better than the four-year average for February to January of a drop of 17%.
But the group also reported a “noticeable” rise in delinquencies (albeit the numbers were skewed by one outlier respondent, the group says.) And credit approvals fell to 69% (still up from 65%) a year ago. “Almost half of participating organizations reported submitting fewer transactions for approval during the month,” the group said.
For anybody expecting some surge in capital spending that’s going to jump start the economy, well, it’s fine to hope that, but think twice before placing your bets on it. From the release:
“The fact that February new business volume is down compared to February 2009′s anemic numbers tells you that we still have a long way to go in the economic recovery,” said Thomas Jaschik, president, BB&T Equipment Finance located in Towson, MD. “Businesses continue to lack the confidence to make substantial investments in capital equipment. The increase in delinquencies and charge-offs from January to February has a seasonal factor associated with it, but is not a trend you like to see given the run up in these two items in 2009.”