July data shows some regional fluctuations in the upwards trajectory of the recovery we witnessed during May and June. But an overall positive trend remains in Europe.
During July, the European average of lease origination volumes recovered to 72% of its Q1 average. Origination volumes in the UK also reflected this positive trend recovering to 68% of Q1 volumes. However, both the Netherlands and France experienced blips in their recovery trajectories, falling to 60% and 49% respectively. Evidence perhaps that weakened consumer confidence and speculation about a second wave continues to make business recovery uncertain.
Click to view the Acquis Index July graphs
Positive news for the restaurant equipment sector which demonstrated a strong improvement in volumes, with the tally rising to 64% of Q1 volumes in the UK, from lows of 17% and 23% in April and May. Computer equipment also fared better than the average for equipment types, managing to achieve 73% of Q1’s average volumes in the UK. And office equipment also continued to pick up to 70% in the UK and a high of 78% in Europe.
The outlook for August suggests the overall recovery may continue on its trajectory, but it will be interesting to see what impact an unusual summer holiday season may have, and whether fears of a winter resurgence will continue to hamper consumer confidence.
Acquis’ Chief Commercial Officer, James Rudolf, comments, “There are some positive signs of a return to business as usual emerging and some sectors have fared much better than we were anticipating. However, the small fluctuations we are witnessing in different European countries and certain market sectors is something we continue to monitor closely and Acquis, along with our stable insurance partners, are ready to support our clients through periods of continued turbulence.”
As an independent insurance administrator working in partnership with over 90 leasing companies across 13 European countries, Acquis has been providing specialist insurance programmes for equipment leasing for over a decade, and during the course of this time our management data has proved to be a reliable early indicator of changes in new business volumes across the leasing industry.
The Acquis Index shares some of the trends Acquis is witnessing in equipment leasing volumes that may prove a useful indicator for emerging trends in the wider leasing industry. Acquis’ own volumes are predominantly made up of small ticket equipment with an average ticket size of €12,000. 58% of the volumes are made up of IT / office equipment, 15% retail and 12% manufacturing, with the remainder consisting of construction, material handling, medical and other assets.