US equipment finance confidence climbs to highest level in over a year

Confidence across the US equipment finance industry strengthened again in February, reaching its highest level in more than a year, according to the latest Monthly Confidence Index (MCI) from the Equipment Leasing & Finance Association (ELFA).

The February 2026 index rose to 67.6, up from 64.6 in January and the strongest reading since January 2025. The MCI tracks sentiment among senior executives across the $1.3 trillion equipment finance sector and provides a forward-looking view of business conditions, demand, hiring and economic expectations.

The survey shows growing optimism around business conditions and capital expenditure. Over the next four months, 37.5% of executives expect business conditions to improve, while only 4.2% anticipate a deterioration. Confidence in demand for equipment finance also improved, with 45.8% of respondents expecting capex demand to rise and none forecasting a decline.

Access to capital remained stable, with a third of respondents expecting improved access and no executives predicting tighter funding conditions. Hiring intentions also strengthened, with 45.8% of firms planning to increase headcount over the next four months, up from 38.5% in January.

Sentiment around the wider US economy remains cautious but steady. While most respondents continue to rate current conditions as “fair,” expectations for the next six months edged higher, with one-third anticipating an improvement in economic conditions. Business development spending plans also rose sharply, with half of respondents expecting to increase investment in growth initiatives over the next six months.

“Tax policies increase capex spending, but favour cash or lending over leases. Business uncertainty is challenging, but equipment needs to be replaced. Inflation is eroding the benefits of lower interest rates. Lack of workforce is a challenge to reshoring and overall growth. I’m expecting a slow decline in the economy absent a large geopolitical event which could push us into severe recession.”

Meanwhile, Peggy Tomcheck, President of Aspen Capital Company, said rapid advances in AI are driving demand for upgraded technology. “As companies adopt AI tools and modernize their operations, they require upgraded hardware but often prefer to preserve cash flow and maintain flexibility. Equipment leases provide a cost-effective way to access current technology and easily refresh equipment as demands evolve, positioning my business for strong near-term demand.”