Despite rising interest rates and continued economic volatility, new business volume in the third quarter was resilient, up eleven percent year-over-year. However, leaders across banks and independent financing institutions are cautiously optimistic for the remainder of 2022 with goals to expand portfolios. Inflationary pressures and supply chain concerns remain material industry headwinds into the fourth quarter.

The Equipment Leasing & Finance Foundation measures confidence among industry leaders every month. Following a continued decline in 2022, sector confidence among industry leaders bottomed out in July at 46.1. The cautious optimism of industry operators is supported by the index’s recent increase to 48.7 in September of 2022. This represents a 6% increase relative to 2022 lows, even with another significant 75 basis point Fed rate hike occurring in September 2022.