US equipment finance confidence holds strong in September

Confidence in the US equipment finance industry remained elevated for the fourth straight month, according to the Equipment Leasing & Finance Foundation’s (the Foundation) September 2025 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI).

The index held nearly steady at 59.9, compared with 60.2 in August, signalling continued optimism among executives in the US$1.3 trillion sector.

The MCI-EFI, which captures a qualitative assessment of prevailing business conditions and future expectations from industry leaders, highlighted a mix of optimism and caution as executives weighed economic factors, capital access, and market demand.

Survey highlights included:

• Business conditions: 30.4% of executives expect improvement in the next four months (up from 26.9% in August), while 52.2% anticipate conditions will remain steady. However, 17.4% now expect conditions to worsen, nearly doubling from the previous month.
• Capex demand: Expectations for capital expenditure financing strengthened, with 39.1% predicting increased demand for leases and loans (up from 26.9%). Still, 21.7% foresee a decline in demand.
• Access to capital: 21.7% of executives believe access to capital will improve, nearly doubling from August’s 11.5%. None expect a decline in access.
• Employment: Hiring expectations softened sharply, with only 4% planning to add staff, compared to 42.3% last month. Meanwhile, 9.1% now anticipate staff reductions.
• US economy: 8.7% of respondents rated the current economy as “excellent” (up from none in August), while the vast majority – 91.3% – still consider it “fair.”
• Economic outlook: Optimism rose modestly, with 39.1% expecting conditions to improve in the next six months. Yet, pessimism also grew, as 30.4% now forecast worsening conditions.
• Business development spending: More than one-third (34.8%) anticipate ramping up business development investment, a slight increase from August.

Despite uncertainties around employment and the broader economy, the index suggests continued resilience in equipment finance, buoyed by expectations of rising capital expenditures and greater access to funding.