Aug 22 (Reuters) - U.S. companies borrowed 6.8% less to finance equipment investments in July compared with the same period a year ago, the Equipment Leasing and Finance Association said on Friday.
However, equipment borrowings rose by 1.7% from June.
The Washington-based trade association, which monitors economic activity in the equipment sector, valued at more than $1 trillion, also reported that the average credit approval rate rose to 78.2% in July, its highest reading in the last two years. It further said that the overall approval rate has been trending up since November 2024.
"We believe that the trend to 'onshoring' of manufacturing driven by tariffs will ultimately be good, but it is very early to see the demand develop yet," First National Capital Corporation CEO Keith Duggan said.
The ELFA CapEx Finance Index of leasing and finance activity is based on a 25-member survey, including Bank of America BAC.N, the financing units of Caterpillar CAT.N, Dell Technologies DELL.N, Siemens AG SIEGn.DE, Canon 7751.T and Volvo AB VOLVb.ST.
ELFA's non-profit affiliate, the Equipment Leasing & Finance Foundation, sees its August confidence index eased to 60.2, after three consecutive months of increases. A reading above 50 indicates a positive business outlook.
(Reporting by Parth Chandna; Editing by Alan Barona)
((Parth.Chandna@thomsonreuters.com))
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