Leaseurope/Invigors European Business Confidence Survey December 2016

The latest Leaseurope/Invigors Business Confidence Survey findings show a continuing positive sentiment towards the prospects for the European leasing industry in the first half of 2017, despite the political upheavals and uncertainty of last year.

The outlook for new business volumes in the first half of 2017 remains positive in line with previous research, with 80% of those surveyed expecting new business volumes to increase, while just 3% anticipate a decline. Respondents’ expectations on the level of bad debt are mostly stable, with two-thirds of participants (67%) forecasting that bad debt will remain unchanged over the coming 6 months. In terms of competitive pressures, 27% expect margins will decrease in their organisations, a slight decrease on the previous survey (31%), while a further 51% anticipate no change. Nonetheless, 51% of respondents anticipate that net profit in their organisations will increase over the next six months, while only 21% believe that this will fall.

The latest survey suggests that expectations of new competition have risen, compared to the previous study. 36% of those surveyed thought that competition from new entrants was more likely in their home market, up from 26% recorded last June. However 28% expect merger and acquisition activity to increase in the first half of 2017, compared to the 68% who anticipate no change

Industry expectations on a number of other key indicators covering service levels, expenditure and staffing show little change for first last six months of 2017.

This latest Business Confidence Survey suggests that the European leasing industry should enjoy a positive start to 2017. Growth in new business is predicted to remain strong for the first half of the year, while expectations on most of the other KPIs support either an improving or stable trend. Recent political challenges in the US and UK do not appear to have dented sentiment in the European leasing market, though it will be interesting to see if this resilience is maintained in the aftermath of the upcoming elections in France, Germany and the Netherlands.

To find out more, download the report here..