The Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) is designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by the key executives from the $900 billion equipment finance sector.
Why an MCI-EFI?
Confidence in the U.S. economy and the capital markets is a critical driver to the equipment finance industry. Throughout the 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.
Who participates in the MCI-EFI?
The respondents are comprised of a wide cross sections of industry executives including large-ticket, middle market and small-ticket banks, independents and captive equipment finance companies. The MCI-EFI uses the same pool of organization leaders to respond monthly to ensure the survey's integrity. Since the same organizations provide the data from month to month, the results constitute a consistent barometer of the industry's confidence.
How is the MCI-EFI designed?
The survey consists of seven questions and an area for comments, ask the respondents' opinions about the following:
- Current business conditions
- Expected product demand over the next four months
- Access to capital over the next four months
- Future employment conditions
- Evaluation of the current U.S. economy
- U.S. economic conditions over the next six months
- Business development spending expectations
- Open ended question for comment