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Equipment Leasing & Finance Foundation offers new reports on inflation, construction

By Amy Thomas in Thought Leadership Posted June 21, 2018

A new report from the Equipment Leasing & Finance Foundation explains how a world of rising inflation and interest rates may affect the equipment finance industry.

The report examines customer demand, portfolio performance, spreads, and the propensity to finance, while also considering historical evidence for how equipment lessors and the overall credit market have responded during periods of rising inflation and interest rates that have occurred in previous business cycles.

"After years of low inflation and near-zero interest rates, many economists and market analysts believe that inflationary pressures are building and that the Federal Reserve will respond by ramping up efforts to raise interest rates over the next several months," the report says. "This would be an important development for both the U.S. economy and the equipment finance industry."

Get the report here.

New: Report on construction

In addition, the foundation also released a new construction industry report that shows experts and consultants expect the all-time-high spending of 2017 to carry forward as momentum in 2018.

The report is one of the new Vertical Market Outlook Series by the Equipment Leasing & Finance Foundation.

The construction report says it remains to be seen whether the recent reduction in the corporate tax rate will cause construction firms to invest savings into creating additional training programs to facilitate more workers entering the industry or by increasing wages to attract further workers.

However, the Trump Administration's recent decision on steel and aluminum tariffs has prompted serious concern among some construction and heavy equipment associations that profit margins will be squeezed.

Get the report here.

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