The latest numbers from the ELFA’s MLFI-25 are good ones. If the accuracy of the figures match the complexity of the acronyms and the report, it’s positive economic news for all.
ELFA is the Equipment Leasing and Financing Association. It represents companies in the $518 billion equipment finance sector. MLFI-25 is the Monthly Leasing and Finance Index based on the performance of 25 broad-based companies in the industry. In the simplest terms, it reflects the volume of commercial equipment financed in the United States.
The good news is that today’s report shows a 15% increase in business volume for April compared to the same period in 2009. In a March 2010 to April 2010 comparison, the increase was 9% — from $4.3 billion to $4.7 billion. More new business and fewer delinquencies contributed to the totals.
Is it time to break out the champagne and start celebrating? Not quite yet. But business transactions, and just as importantly the confidence to make the equipment purchases in the first place, are essential to economic recovery.
The MLFI is released each month the day before the U.S. Department of Commerce’s durable goods report. Hopefully those numbers will also be positive.