US equipment finance confidence inches up amid tariff concerns

Confidence in the US equipment finance industry edged up in May, though it remains under pressure from global tariff uncertainty and cautious economic sentiment, according to the latest Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) released by the Equipment Leasing & Finance Foundation.

The overall confidence index stands at 44.5, up from 41.9 in April, reflecting a modest increase in optimism among industry executives. Despite the gain, it is still the second-lowest reading since December 2023, signalling continued unease across the US$1.3 trillion equipment finance sector.

“Pipelines and funded business have picked up after a slow start to the year,” said Joseph Hines, Head of Equipment Finance at Trustmark Bank Equipment Finance.

“Some of the uptick in new business may be a mix of new projects, maintenance capex, and pulling purchases forward due to tariff fears and rising costs. Time will tell how much of the new business are purchases being accelerated, but we remain optimistic the tariff discussions and outcomes will be positive and a return to some normalcy in the market.”

Survey highlights in May 2025 include:

Business conditions: Only 4% of executives expect business conditions to improve in the next four months—down from 15.4% in April. A growing majority (52%) believe conditions will remain the same, while 44% foresee a decline.
Capex demand: Just 8% expect increased demand for leases and loans to fund capital expenditures, compared to 11.5% last month. Nearly half (48%) predict a decline, though that’s down from 61.5% in April.
Access to capital: Access remains stable, with 95.8% expecting it to stay the same. Only 4.2% anticipate increased access, and none expect it to worsen.
Employment outlook: 24% expect to add staff, up slightly from 23.1%. Most (72%) foresee no change in hiring.
US economy: Confidence in the current state of the US economy is wavering, with 16% now rating it as “poor,” up from 11.5%. Still, 44% expect economic conditions to stay the same over the next six months, while another 44% predict a decline.
Business development: Investment intentions are rising. 32% of respondents plan to increase business development spending, up from 19.2% in April.