US Capital-Equipment Financing Up 9.7% In March - Survey

Date : 04/23/2012 @ 3:30PM
Source : Dow Jones News
Stock : Deere & Company (DE)
Quote : 153.18  -4.87 (-3.08%) @ 11:30AM
Deere share price Chart

US Capital-Equipment Financing Up 9.7% In March - Survey

Wells Fargo (NYSE:WFC)
Historical Stock Chart

5 Years : From Mar 2013 to Mar 2018

Click Here for more Wells Fargo Charts.

A survey of credit providers showed that loans and leases for business equipment in the U.S. rose 9.7% in March from a year ago, capping off a nearly 17% increase in financing activity during the first quarter.

Respondents to the Equipment Leasing and Finance Association's monthly survey said they financed $6.8 billion of new equipment last month, up from $6.2 billion in the year-earlier period. March's volume was up 36% from February and was the highest since September 2011. First-quarter volume totaled $16.9 billion, compared with $14.5 billion a year ago.

March's survey results support a continuation of spending on capital equipment, as companies replace worn-out or obsolete equipment after deferring such activity during the U.S. economic recession in 2008 and the subsequent sluggish recovery. But year-over-year growth is likely to moderate as the survey faces tougher year-ago comparison figures and volume eases during the summer months ahead.

"Increases of the magnitude we have experienced during the past two to three years in a recovery mode are probably not sustainable," said William Sutton, president of the Washington-based trade association. "Nevertheless, a 10% rate of growth for [March] continues a positive trend by businesses to make capex investments."

Credit portfolio quality measured by the survey improved from a year ago and was mostly stable on a month-to-month basis. Loans and leases past due by more than 30 days fell to 2.8% of survey respondents' net receivables in March, down from 3.5% a year earlier and up slightly from 2.5% in March.

Meanwhile, charge-offs amounted to 0.7% of respondents' net receivables last month, down from 1.3% a year ago and up from 0.5% in February. The approval rate for loans and leases was 78.4% in March, up from 75.4% a year ago and down slightly from 78.8% in February. Survey respondents continued to cite construction and trucking as the industry sectors within their loan portfolios that are underperforming.

A monthly confidence index of the U.S. capital-equipment finance industry rose to 62.7 in April from 61.7 in March.

The 25 respondents to the association's survey included banks Wells Fargo & Co. (WFC), Bank of America Corp. (BAC) and Fifth Third Bancorp (FITB), as well as finance units for manufacturers Caterpillar Inc. (CAT), Deere & Co. (DE), Volvo Group and Dell Inc. (DELL).

-By Bob Tita, Dow Jones Newswires; 312-750-4129;

Latest DE Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....

No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts
Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P:43 V:us D:20180322 15:45:36