Confidence in the US equipment finance market eased to 66.9, according to the February 2025 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) released by the Equipment Leasing & Finance Foundation.
February’s figure was down from the January index of 69.6, after three consecutive months of increases. The index reports a qualitative assessment of both the prevailing business conditions and future expectations as reported by key executives from the US$1.3 trillion US equipment finance sector.
When asked about the outlook for the future, MCI-EFI survey respondent David Normandin, CLFP, President and Chief Executive Officer at Wintrust Specialty Finance, said:
“I am optimistic about the opportunities that may happen in 2025. Business confidence is strong, which will lead to additional investment into capital equipment. Additionally, while inflation is still higher than desired, it is a marked improvement from the recent past. With that said, delinquency and credit quality remain a challenge with bankruptcy rates continuing to rise and stress in consumer auto and credit card debt.
“2025 may not be an easy year, but there will be opportunities to leverage if you are nimble and creative in solving challenges,” he concluded.
February 2025 survey results
The overall MCI-EFI is 66.9, down from the January index of 69.6.
Business conditions. When asked to assess their business conditions over the next four months, 53.6% of the executives responding said they believe business conditions will improve over the next four months, a decrease from 57.1% in January. 35.7% believe business conditions will remain the same over the next four months, down from 38.1% the previous month. 10.7% believe business conditions will worsen, up from 8% in January.
Capex demand. 4% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, down from 47.6% in January. 50% believe demand will “remain the same” during the same four-month time period, up from 47.6% the previous month. 3.6% believe demand will decline, a decrease from 4.8% in January.
Access to capital. 25% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, down from 28.6% in January. 75% of executives indicate they expect the “same” access to capital to fund business, up from 71.4% the previous month. None expect “less” access to capital, unchanged from January.
Employment. When asked, 35.7% of the executives report they expect to hire more employees over the next four months, a decrease from 47.6% in January. 64.3% expect no change in headcount over the next four months, up from 52.4% last month. None expect to hire fewer employees, unchanged from January.
US economy. 3.6% of the leadership evaluate the current US economy as “excellent,” down from 9.5% the previous month. 92.9% evaluate the economy as “fair,” up from 85.7% in January. 3.6% evaluate it as “poor,” down from 4.8% last month.
Economic outlook. 2% of the survey respondents believe that US economic conditions will get “better” over the next six months, down from 52.4% in January. 40.7% indicate they believe the US economy will “stay the same” over the next six months, down from 47.6% last month. 11.1% believe economic conditions in the US. will worsen over the next six months, an increase from none the previous month.
Business development spending. In February, 39.3% of respondents indicate they believe their company will increase spending on business development activities during the next six months, up from 38.1% the previous month. 60.7% believe there will be “no change” in business development spending, a decrease from 61.9% in January. None believe there will be a decrease in spending, unchanged from last month.
