90.9% of the leadership evaluates the current U.S. economy as "fair," steady with 91.2% last month. 9.1% rate it as "poor," also steady with 8.8% in August.

18.2% of survey respondents believe that U.S. economic conditions will get "better" over the next six months, a decrease from 26.5% in August. 78.8% of survey respondents indicate they believe the U.S. economy will "stay the same" over the next six months, an increase from 70.6% in August. 3.0% believe economic conditions in the U.S. will worsen over the next six months, unchanged from last month.


In September, 30.3% of respondents indicate they believe their company will increase spending on business development activities during the next six months, an increase from 29.4% in August. 66.7% believe there will be "no change" in business development spending, a decrease from 70.6% last month. 3% believe there will be a decrease in spending, up from no one who believed so in August.

September 2013 MCI Survey Comments from Industry Executive Leadership:

Depending on the market segment they represent, executives have differing points of view on the current and future outlook for the industry.

Independent, Small Ticket

"Our long term view is optimistic. However, in the near term the challenge of continued growth becomes greater as margins continue to narrow and demand is not at a robust pace. Small business owners-who are our customers-are still not exhibiting the same behavior as it relates to capital equipment acquisition that their larger counterparts are experiencing. It is sometimes as though the economy has two very different sides." Valerie Hayes Jester, President, Brandywine Capital Associates, Inc.

Independent, Small Ticket

"We continue to see moderate demand in the small business segment. Job growth continues to be unimpressive and not significant enough to propel anything more than modest demand for new equipment. Portfolio performance is outstanding in terms of delinquency and defaults and we don't expect any significant change in the near term." David Schaefer, CEO, Mintaka Financial, LLC

Bank, Middle Ticket

"At this point I don't believe we have an economic recovery but economic stagnation. There is no momentum in the economy, only the hope that conditions may get better but hopefully won't get any worse. The upcoming fiscal battle in Washington will only add to the stagnation. As such, the equipment finance market will see only marginal growth over the coming months." Thomas Jaschik, President, BB&T Equipment Finance

Why an MCI-EFI?

Confidence in the U.S. economy and the capital markets is a critical driver to the equipment finance industry. Throughout history, when confidence increases, consumers and businesses are more apt to acquire more consumer goods, equipment and durables, and invest at prevailing prices. When confidence decreases, spending and risk-taking tend to fall. Investors are said to be confident when the news about the future is good and stock prices are rising.

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