WASHINGTON (MNI) – The following is the text of the Equipment
Leasign and Finance Association’s summary of its monthly leasing and
finance report, published Tuesday:

Equipment Leasing and Finance Association’s Survey of Economic
Activity: Monthly Leasing and Finance Index
–Data Shows Modest Industry Growth
–But Future Confidence Levels Still Uncertain

The Equipment Leasing and Finance Association’s (ELFA) Monthly
Leasing and Finance Index (MLFI-25), which reports economic activity for
the $518 billion equipment finance sector, showed overall new business
volume for June increased 6 percent when compared to the same period
in 2009. When compared to the prior month, the MLFI-25 reported new
business volume increased by 25 percent, from $4.4 billion to $5.5
billion. After 20 consecutive months of declines, business volume has
shown positive year-over-year growth each month during the second
quarter ended June 30.

Portfolio quality is also improving. Receivables over 30 days
declined to 3.3 percent, down from 4.0 percent in the prior month and
4.1 percent in the year-earlier period. Charge-offs, while increasing
slightly from the prior month, showed a steep decline when compared to
the year earlier period.

The number of credit approvals climbed to 70 percent in June, up
from 65 percent in the same period the prior year. Two-thirds of
participating organizations reported submitting more transactions for
approval during the month. Finally, total headcount for equipment
finance companies remained steady in the May-June period. Construction,
truck transportation and small business continue to lead the
underperforming sectors.

A related index, the Equipment Leasing & Finance Foundation’s
Monthly Confidence Index (MCI-EFI), for July was at 57.6, a decrease
from the June 2010 index of 65.2.

“While volume has improved, we are seeing an increase in
month-to-month renewals of existing leases as customers are still
hesitant to commit to new capital spending for expansion in what still
appears to be a volatile economy,” said Jim McGrane, President, EverBank
Commercial Finance. “In the healthcare market, for instance, the wave
of demand anticipated after passage of the American Recovery and
Reinvestment Act has not kicked in as practitioners have not rushed to
take advantage of expected reimbursements.”

McGrane added, “In general, demand for the equipment we finance is
still soft, while credit quality and payment experience have been
improving consistently, which we see as setting a positive foundation
for future growth.”

“Based on our data, the equipment finance industry continues to
show gradual but steady growth,” said William G. Sutton, ELFA President.
“Demand for capital equipment seems to be strengthening, albeit at a
slow pace, and credit quality is slowly improving as well.”

About the ELFA’s MLFI-25

The MLFI-25 is the only index that reflects capex, or the volume of
commercial equipment financed in the U.S. The MLFI-25 is released
globally at 9 a.m. Eastern time from Washington, D.C., each month, on
the day before the U.S. Department of Commerce releases the durable
goods report. The MLFI-25 is a financial indicator that complements the
durable goods report and other economic indexes, including the Institute
for Supply Management Index, which reports economic activity in the
manufacturing sector. Together with the MLFI-25 these reports provide a
complete view of the status of productive assets in the U.S. economy:
equipment produced, acquired and financed.

The latest Monthly Leasing and Finance Index, including methodology
and participants is available below and also at

http://www.elfaonline.org/ind/research/MLFI/

** Market News International Washington Bureau: 202-371-2121 **

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