June 23 U.S. companies' borrowing to spend on
capital investment fell in May, the Equipment Leasing and
Finance Association (ELFA) said.
Companies signed up for $6.9 billion in new loans, leases
and lines of credit last month, down 8 percent from a year
earlier. Their borrowing fell 14 percent from April.
"The small decline in new business volume makes the case for
a slow recovery in certain sectors of the economy in which
equipment financing plays an important role," ELFA Chief
Executive William Sutton said in a statement.
Washington-based ELFA, a trade association that reports
economic activity for the $827 billion equipment finance sector,
said credit approvals totaled 76.1 percent in May, down from
77.4 percent in April.
ELFA's leasing and finance index measures the volume of
commercial equipment financed in the United States. It is
designed to complement the U.S. Commerce Department's durable
goods orders report, which it typically precedes by a day.
ELFA's index is based on a survey of 25 members that include
Bank of America Corp, BB&T Corp, CIT Group Inc
and the financing affiliates or subsidiaries of
Caterpillar Inc, Deere & Co, Verizon
Communications Inc, Siemens AG, Canon Inc
and Volvo AB.
The Equipment Leasing & Finance Foundation, ELFA's
non-profit affiliate, said its confidence index fell to 61.4 in
June from 65.4 in May.
A reading of above 50 indicates a positive outlook.
(Reporting By Abinaya Vijayaraghavan; Editing by Saumyadeb