Dec 22 (Reuters) - U.S. companies borrowed 4.4% less to finance equipment investments in November compared with the same period a year earlier, the Equipment Leasing and Finance Association (ELFA) said on Monday.
New loans, leases and lines of credit signed up by companies in November were $10.3 billion on a seasonally adjusted basis, down slightly from the prior month.
The Washington-based trade association, which tracks economic activity in the equipment sector valued at more than $1 trillion, said activity at all three institution types declined in November.
New deal growth at banks slipped 1% to $4.9 billion, while captive volumes fell 9.3% to $2.9 billion and independents dropped 12.9% to $1.9 billion.
Financial conditions remain healthy, suggesting that the sector will not be materially impacted if borrowing costs stay near current levels next year, according to the report.
"We expect that the Fed’s decision to lower the federal funds rate by 75 basis points in 2025 will bolster momentum for equipment demand next year," ELFA President and CEO Leigh Lytle said.
The ELFA CapEx Finance Index of leasing and finance activity is based on a 25-member survey, including Bank of America BAC.N as well as the financing units of Caterpillar CAT.N, Dell Technologies DELL.N, Siemens AG SIEGn.DE, Canon 7751.T and Volvo AB VOLVb.ST.
The Equipment Leasing & Finance Foundation's, ELFA's non-profit affiliate, confidence index remains steady at year end at 58.3 from 59.9 in November. A reading above 50 indicates a positive business outlook.
(Reporting by Megavarshini G. Somasundaram in Bengaluru; Editing by Tasim Zahid)
((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com;))
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