US equipment finance confidence rises again in June

Confidence in the US equipment finance sector continued to strengthen in June, with industry sentiment rising for the second consecutive month despite ongoing geopolitical tensions and economic uncertainty.

The latest Monthly Confidence Index (MCI) from the Equipment Leasing & Finance Association showed confidence among equipment finance executives increased to 63.7 in June, up from 59.9 in May. The rise marks a continued recovery in sentiment since the outbreak of the conflict involving Iran and reflects growing optimism about business conditions, hiring plans and access to capital.

The MCI provides a qualitative assessment of executive sentiment across the $1.3 trillion US equipment finance industry.

Respondents reported a more positive outlook for business conditions over the next four months. More than 30% of executives expect conditions to improve, up from 27.3% in May, while the proportion expecting conditions to deteriorate fell by more than half to 4.4%.

Confidence in capital expenditure financing demand also improved. Nearly one-third (31.8%) of respondents expect demand for equipment finance leases and loans to increase over the next four months, compared with 26.1% in May. Although a growing proportion anticipate stronger demand, most executives continue to expect activity levels to remain broadly stable.

Access to capital also improved. More than a quarter of respondents expect funding availability to increase over the coming months, compared with 17.4% in May, while no respondents expect access to capital to worsen.

Employment intentions strengthened significantly. Half of all executives surveyed expect to increase headcount over the next four months, up from 40.9% in May, while none anticipate reducing staff numbers.

Business development investment plans were similarly upbeat. Almost 46% of respondents expect to increase spending on business development activities during the next six months, compared with just 27.3% in May.

Despite the improving industry outlook, executives remain more cautious about the broader US economy. Only 25% believe economic conditions will improve over the next six months, down from 30.4% in May, while a quarter expect conditions to worsen.

Industry leaders cited a mix of opportunities and challenges shaping the market outlook.

“As we approach the first half of 2026, the year continues to have many twists and turns that require diligent and consistent discipline to perform through,” he said.

Normandin highlighted interest rate volatility, margin pressures and rising corporate bankruptcies as areas requiring close attention, while expressing confidence in his firm’s ability to capitalise on opportunities during the remainder of the year.

A more optimistic view was offered by Jim DeFrank, executive vice-president and chief operating officer at Isuzu Finance of America.

“I feel more positive about the US economy over the next six months,” he said. “Recent data shows a strong job market and steady consumer spending, which suggest a solid base for growth.”

However, concerns remain around inflation and global economic risks. Jeffry Elliott, chief executive of Elevex Capital, said inflationary pressures and supply chain disruption continue to weigh on sentiment.

“I’m currently concerned about inflation and supply chain risks with global economic uncertainty beginning to weigh on US markets,” he said.

Meanwhile, James D. Jenks, chief executive of Global Finance and Leasing Services, suggested that an easing of geopolitical tensions could provide a further boost to economic activity.

“When the Iran war is settled, the US economy should pick up considerably.”