US equipment finance confidence rebounds from tariff pressures

After months of uncertainty, confidence in the US equipment finance sector has surged, according to the June 2025 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI), released by the Equipment Leasing & Finance Foundation.

The overall index rose to 58.2, marking a strong rebound from the lows of 44.5 in May and 45.1 in April, reflecting a renewed sense of optimism among executives across the US$1.3 trillion equipment finance industry.

The MCI-EFI, which measures industry sentiment based on executive responses, signals a return to historically more positive territory as tariff uncertainty begins to ease and businesses revisit delayed investment plans.

“As tariff talks continue to ping pong back and forth, one thing is clear: businesses continue to grow and demand financing. Tired of the ‘wait and see’ approach, many are pulling the trigger and looking forward,” said Charles Jones, SVP at 1st Equipment Finance, Inc.

Key survey highlights include:

Business conditions: Nearly 30% of executives expect business conditions to improve in the next four months — a substantial increase from just 4% in May. Only 11.1% foresee a downturn, compared to 44% last month.
Capex demand: Expectations for lease and loan demand related to capital expenditures are also on the rise. 29.6% of respondents anticipate increased demand, up from just 8% in May.
Access to capital: Access to funding for equipment acquisitions is improving, with 18.5% of executives expecting greater access to capital, up from a mere 4.2% last month.
Hiring outlook: 33.3% of respondents plan to hire over the next four months, suggesting growing confidence in workforce expansion.
US economic outlook: Optimism about the broader economy is improving. Nearly 30% of respondents now believe the U.S. economy will improve in the next six months, up from 12% in May.

Despite the uptick in overall sentiment, some caution remains. Business development spending is expected to stay flat for most firms, and only a small portion (18.5%) plans to increase investment in this area.

“As companies are getting a better feel for where tariffs will land, it’s very plausible we’ll see pent-up demand begin to release, backlogged or postponed purchases resurface, and a shift in financing behaviour,” said Jim DeFrank, EVP and COO of Isuzu Finance of America, Inc. “Leasing in particular could spike, as companies look to preserve cash while still upgrading assets.”

“2025 has been a good year for many equipment finance companies and the possibility for incremental improvement is visible. I expect to realise a solid growth year,” added David Normandin, CEO of Wintrust Specialty Finance.