US equipment finance confidence eases in October

Confidence in the US equipment finance industry declined slightly in October, with expectations for capital expenditure demand and access to funding moderating, according to the latest Equipment Leasing & Finance Association (ELFA) survey.

ELFA’s October 2026 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) fell to 60.4, down from 62.4 in September.

The index provides a qualitative assessment of sentiment among senior executives in the $1.3 trillion US equipment finance industry.

Despite the decline, the findings suggest that industry leaders remain broadly confident about business conditions, with most expecting stability over the coming months.

Some 27.3% of respondents expect business conditions to improve over the next four months, up slightly from 26.1% in September. A further 68.2% anticipate conditions will remain unchanged, while just 4.5% expect them to worsen.

However, expectations for demand for equipment finance weakened. Only 18.2% of executives expect demand for leases and loans to fund capital expenditure to increase over the next four months, compared with 31.8% in September.

The majority (81.8%) expect demand to remain stable, while no respondents anticipate a decline.

Funding and recruitment expectations moderate

Expectations for access to capital also softened, with 19% of executives anticipating improved funding availability over the next four months, down from 27.3% in September.

The remaining 81% expect access to capital to remain unchanged, with none forecasting a deterioration.

Recruitment expectations were similarly more cautious. Some 42.9% of respondents expect to increase headcount, compared with 47.8% in September, while 52.4% anticipate no change and 4.8% expect to reduce staffing levels.

Looking at the wider US economy, 90.9% of executives described current economic conditions as fair, with 4.5% rating them excellent and the same proportion considering them poor.

Over the next six months, 18.2% expect economic conditions to improve, down from 20.8% in September. Meanwhile, 59.1% anticipate stability and 22.7% expect conditions to worsen.

Business development spending expectations remained relatively steady, with 38.1% of respondents planning to increase investment in these activities over the next six months.

Industry expects strong finish to 2026

Despite the slight easing in confidence, industry executives remain positive about new business volumes and credit performance.

“2026 has been a solid year for new business volume and Q4 looks to be on track to finish the year strong. Obligor confidence in the market is evidenced by this volume increase and credit quality has improved throughout the year.

“The industry and our customers continue to adapt to uncertainty and take advantage of the opportunities that it creates.”