(Reuters) -U.S. companies borrowed 2% less to finance equipment in August than a year earlier, the Equipment Leasing and Finance Association (ELFA) said on Tuesday.

However, equipment borrowings rose by 2.8% from July.

The Washington-based trade association, which monitors economic activity in the equipment sector valued at more than $1 trillion, also reported that the average credit approval rate rose to 78.7% in August, the highest rate since December 2021.

“The equipment finance sector is holding up well despite some choppiness, and we’re seeing a second consecutive month of improving demand,” said Leigh Lytle, ELFA President and CEO.

“With lower interest rates now a reality, we should see an easier financial environment, which should help fuel growth in equipment and software deman

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