U.S. business borrowing for equipment up in Sept.
Oct 24 (Reuters) - U.S. companies borrowed more to buy or lease capital equipment in September and did a better job of keeping up to date on their existing debts, boosting a key measure of business activity, a lender group said on Monday.
The Equipment Leasing and Finance Association said U.S. businesses originated $7.1 billion in new loans, leases and lines of credit last month, up from $5.7 billion in August.
Companies use that money to invest in everything from tool-and-die machines and delivery trucks to office furniture and computer software.
"It's a replacement environment," ELFA President William Sutton said in a phone interview. "People aren't in a growth or expansion mode."
Demand for finance was up in the agriculture, healthcare and information technology sectors, Sutton said. The construction and trucking sectors remained weak.
The group, which represents the lenders who finance half the capital investment in the United States each year, said 2.3 percent of borrowers were 30 days or more behind in paying their debts, down from 2.5 percent in August and the lowest reading since late 2006, before the recession.
ELFA's confidence index rose to 50.7 in October, up from 47.6 in September. The diffusion index centers around 50, with any reading above that point positive and one below negative.
Source: Reuters
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