The August Monthly Confidence Index (MCI-EFI) reveals confidence in the equipment finance market has started to slip, with the index landing at 60.2 for the month.

This follows three consecutive increases with the July MCI-EFI at 61.6.

The MCI-EFI fell to an 18-month low in April 2025 to sit at 41.9.

The MCI-EFI is produced by the Equipment Leasing & Finance Foundation (ELFF) for the USD1.3 trillion equipment finance industry.

The ELFF says since more than eight out of 10 US businesses ranging from small businesses to Fortune 100 companies use at least one form of financing for their equipment acquisitions, equipment finance industry confidence is significant for companies across all industries.

The August MCI-EFI found the majority of respondents to the monthly survey expect the market to stay stable, with 69.2% believing business conditions will remain the same in the next four months, up from July’s 58.3%.

Likewise, most (61.5%) expect capex demand in the next four months to also remain stable, also up from 58.3% in July. 

None of the respondents evaluate the US economy as “excellent”, down from 8.3% in July, with 100% of respondents assessing it as “fair”, up from July’s 91.7%.

“Over the next six months, 23.1% of respondents believe that US economic conditions will ‘get better’, a notable decline from 41.7% in July”, the MCI-EFI found. 

“More favourably, 65.4% expect the US economy to ‘stay the same’ (up from 41.7%), and 11.5% believe economic conditions will worsen, a decrease from 16.7% last month.”

Survey participant, Charles Jones, senior vice president, 1st Equipment Finance, is quoted in the August MCI-EFI as saying “the impact of tariffs, real or perceived, is still a risk”. 

“As costs increase for everyday items and proposed tax cuts aren’t yet realised, we are in a state of ‘wait and see’,” Jones adds.

James D. Jenks, CEO, Global Finance and Leasing Services, who is also a survey respondent adds: “Slowly, we are seeing that tariffs are not moving inflation higher as critics projected. Any relief on the fed funds rate will certainly open up the economy.”