In the month of May 2025, the Equipment Leasing & Finance Foundation released its updated Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). The index has risen to 44.5 from April's 41.9, marking it as the second-lowest since December 2023. This figure reflects a qualitative evaluation of current business conditions and future expectations by key executives within the $1.3 trillion equipment finance sector. Industry leaders expressed cautious optimism regarding market recovery, noting an uptick in business activity due to new projects, maintenance capital expenditures, and accelerated purchases driven by tariff concerns.

Executives in the equipment finance industry have shared their outlook on various aspects affecting their businesses over the next few months. When questioned about their views on upcoming business conditions, only a small percentage anticipate improvement, while the majority expect stability or decline. Regarding capital expenditure demand, opinions diverge with some predicting steady or declining trends. Access to funding remains relatively stable, with nearly all respondents expecting no change in capital availability. Employment projections show a slight increase in hiring intentions, though most foresee no significant workforce adjustments.

The sentiment toward the U.S. economy varies among these leaders, with none rating it as excellent but many considering it fair. Looking ahead six months, there is a mixed forecast with portions of the surveyed group believing economic conditions will improve, remain unchanged, or deteriorate. Business development spending also shows signs of growth, with a notable portion of companies planning to boost such expenditures.

Industry voices highlighted differing perspectives on trade policies and tariffs. Some express growing confidence in recent trade negotiations, emphasizing positive impacts on U.S. manufacturing. Others point out that despite lingering uncertainties, strong actual volumes indicate continued corporate investments, potentially boding well for the year. Concerns persist about the stress on credit profiles due to unresolved tariff issues, which may hinder economic recovery if not addressed promptly.

Amid fluctuating market dynamics, the latest MCI-EFI underscores a nuanced view among equipment finance leaders. While challenges remain, the modest rise in confidence suggests resilience and adaptability within the sector. Executives emphasize the importance of resolving critical issues like tariffs to ensure sustained growth and stability moving forward.