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Equipment Leasing Finance Sector Grew in March

Equipment Finance Sector Grew in March

The Equipment Leasing and Finance Association's (ELFA's) Monthly Leasing and Finance Index climbed 10 percent in March, signaling growth in economic activity for the $628 billion equipment finance sector.

According to the index, business volume grew 36 percent over the previous month, with year-to-date cumulative new business volume up 17 percent overall.

William G. Sutton, president and CEO of ELFA, said in a release that increasing growth seen over the past few years may not be sustainable.

"Nevertheless, a 10 percent rate of growth for the period continues a positive trend by businesses to make capex investments in productive assets," he added. "Credit quality metrics appear to be stabilizing, returning to pre-recession levels."

Receivables over 30 days climbed to 2.8 percent in March from February's level of 2.5 percent, while total headcount at equipment finance firms fell 0.7 percent during the month, according to the ELFA index.

Dow Jones Newswires reports a monthly confidence index for the capital-equipment finance industry rose a full percentage point in April to 62.7 percent.