(Reuters) - U.S. companies borrowed 10% less to finance equipment investments in August compared with the year-ago period, the Equipment Leasing and Finance Association (ELFA) said on Tuesday.
New loans, leases and lines of credit signed up by companies in August were also down 17% from $11.1 billion a month earlier.
"The Fed’s decision to begin lowering interest rates will support demand for equipment, even if some businesses wait for rates to fall further before investing," ELFA President and CEO Leigh Lytle said.
The Washington-based trade association, which reports economic activity for the over $1 trillion-worth equipment finance sector, also said that credit approvals for U.S. companies in August, at 76%, were unchanged from July.
ELFA's non-profit affiliate, the Equipment Leasing & Finance Foundation, said its confidence index for September stood at 61.9, its highest level in more than two years, up from the August index of 58.4.
A reading above 50 indicates a positive business outlook.
The ELFA's leasing and finance index is based on a 25-member survey that includes Bank of America and financing units of Caterpillar (NYSE:CAT), Dell Technologies (NYSE:DELL), Siemens AG (OTC:SIEGY), Canon Inc and Volvo AB (OTC:VLVLY).