Equipment Finance Quarterly Update: 2022 Fourth Quarter

Despite rising interest rates and continued economic volatility, new business volume in the fourth quarter held strong, up 9.3% year-over-year. Industry leaders across banks and independent financing institutions are impressed with the resilient growth exhibited by the equipment finance sector. Inflationary pressures and concerns about the Federal reserve’s monetary policy stance remain material industry headwinds into the new year.

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 October at 43.7. Shortly thereafter, sentiment amongst industry operators improved, as evidenced by the index value of 45.9 in December of 2022. This represents a 5% increase relative to October lows, despite the Fed’s 50 basis point Fed rate hike in December of 2022.

Equipment Finance Q1 2023