US equipment finance confidence holds steady for fifth month

Confidence among equipment finance executives remains strong for the fifth consecutive month, according to the Equipment Leasing & Finance Foundation’s (ELFF) latest Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). The October index registered at 60.1, nearly unchanged from 59.9 in September, signalling continued optimism in the US$1.3 trillion equipment finance sector.

The October findings reflect stability across business sentiment and investment expectations, with executives maintaining confidence in market resilience despite mixed views on economic momentum.

“This has been a solid year in terms of strong new business volume and book growth,” said David Normandin, CLFP, President and CEO of Wintrust Specialty Finance.

“As we move into the fourth quarter, we expect solid new business volume and continued portfolio performance,” he added.

According to the ELFF report, 37.5% of executives expect business conditions to improve over the next four months – up from 30.4% in September – while 54.2% anticipate conditions will remain the same. Only 8.3% foresee a decline, down sharply from 17.4% last month. Expectations for capital expenditure financing demand were slightly lower, with 37.5% anticipating an increase (down from 39.1%) and 54.2% expecting it to hold steady.

Optimism about access to capital continues to rise, with one in four respondents expecting improved funding availability, up from 21.7% in September. Hiring plans, however, softened modestly: a quarter of executives plan to expand headcount—down from 36.4%, while two-thirds expect no change.

Confidence in the broader US economy remains cautious but steady. All respondents rated current conditions as “fair,” with none describing them as “excellent” or “poor.” Looking ahead, roughly 30% of executives believe the US economy will improve over the next six months – down from 39.1% in September – while a similar share expect conditions to worsen.

In terms of business development spending, 29.2% of respondents plan to increase investment in growth initiatives, slightly below 34.8% in September, while two-thirds expect spending to remain unchanged.

Executives across the industry expressed a generally positive but measured outlook for the remainder of 2025. “The equipment finance industry is well established,” said James D. Jenks, CEO of Global Finance and Leasing Services, LLC. “We believe the industry will continue to experience change and continue to grow.”

Jeffry Elliott, CLFP, CEO of Elevex Capital and Treasurer of the Equipment Leasing & Finance Association, added that “built-up demand due to tariff confusion will make Q4 a big quarter.” Similarly, Jonathan Albin, COO of Nexseer Capital, noted that “changes to tax laws, a potentially decreasing rate environment, and pent-up demand will add new tailwinds to capital equipment investment.”

The Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) provides a forward-looking snapshot of sentiment among key executives across the equipment leasing and finance sector. A reading above 50 indicates a positive outlook and expansion.