Senior equipment leasing executives continue to predict expect long-term growth in the sector, although the proportion who believe the US economy is on the upturn has fallen, according to the latest analysis from the Equipment Leasing & Finance Foundation.

The Foundation’s July monthly confidence index for the equipment finance industry (MCI-EFI) shows confidence in the equipment finance market was relatively unchanged in July from the previous two months at 63.5.

When asked about the outlook for the future, survey respondent Thomas Jaschik, president, BB&T Equipment Finance, said: “US companies are poised to make significant investments in capital equipment. However, many continue to delay plans until tax and regulatory reform legislation gets on track. Until then it will be ‘wait and see.’ The equipment finance industry should see a significant increase in activity if and when this occurs.”

Assessing their business conditions over the next four months, 30.3% of executives said they believe business conditions will improve, a slight decrease from 31% in June, while the majority maintain business conditions will remain the same.

Significantly more (39.4%) respondents believe demand for leases and loans to fund capital expenditures will increase over the next four months, up from 17.2% in June.  Around half (57.6%) believe demand will remain the same.

Nearly one quarter (24.2%) of the respondents believe that US economic conditions will get better over the next six months, a decrease from 41.4% in June.

Just over three-quarters (75.8%) now indicate they believe the economy will stay the same over the next six months, an increase from 51.7% the previous month.

No respondents said economic conditions in the US will worsen over the next six months, down from 6.9% who believed so last month.