The Equipment Leasing & Finance Foundation (the Foundation) has released the March 2025 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI), revealing a significant decline in confidence levels. The overall index dropped to 58.1, down from February’s 66.9, marking the lowest level since July 2024.
The MCI-EFI provides a qualitative assessment of business conditions and future expectations, as reported by executives from the US$1.3 trillion equipment finance sector. This month’s dip reflects growing concerns over economic uncertainty, regulatory factors, and global trade policies.
Survey respondents remain cautiously optimistic despite the decline, with many focusing on strategic planning to navigate both opportunities and risks.
Donna Yanuzzi, EVP and Head of Equipment Finance at 1st Equipment Finance, Inc., commented, “Weeding through the noise, the Trump administration appears to be pro-business and regulatory realistic.
“This combination should drive investment and growth. However, the concerns of tariffs may impact business growth in some fashion. Now, more than ever, strategic planning will be key in navigating the opportunities and risks ahead.”
March 2025 Survey Findings:
- Business conditions: Only 28.6% of executives expect business conditions to improve over the next four months, a sharp decline from 53.6% in February. Meanwhile, 53.6% believe conditions will remain the same (up from 35.7%), and 17.9% foresee worsening conditions (up from 10.7%).
- Demand for capital expenditures (Capex): 32.1% of respondents anticipate an increase in demand for leases and loans to fund capex, down from 46.4% in February. 42.9% expect demand to remain stable, while 25% foresee a decline—up significantly from 3.6% the previous month.
- Access to capital: 21.4% of executives expect greater access to capital for equipment acquisitions, slightly down from 25% in February. A vast majority (75%) expect capital availability to remain unchanged, while 3.6% predict a decrease in access.
- Employment trends: Hiring expectations softened slightly, with 32.1% of respondents planning to increase staff in the next four months, down from 35.7% in February. The majority (67.9%) anticipate maintaining current staffing levels, while none foresee job cuts.
- US economic conditions: Executive sentiment toward the U.S. economy remained largely unchanged. 3.6% rated the current economic climate as “excellent,” while 92.9% deemed it “fair” and 3.6% labelled it “poor.”
- Economic outlook: Optimism about the US economy has waned, with only 32.1% believing conditions will improve over the next six months, down from 48.2% in February. Meanwhile, 39.3% expect stability (down from 40.7%), and 28.6% anticipate a decline in economic conditions, up significantly from 11.1% last month.
- Business development spending: 35.7% of executives plan to increase spending on business development in the next six months, down from 39.3% in February. Meanwhile, 64.3% expect no change, and none foresee a decrease.
