The Equipment Leasing & Finance Foundation’s Monthly Confidence Index for the US equipment finance industry (MCI-EFI) was at a three-year high in December 2024 sitting at 68.8, from November’s 67.5.

The survey, which is taken by key executives in the USD1.3 trillion equipment finance sector, found 57.1% of respondents believe business conditions will improve over the next four months, a significant jump from the November figure of 43.3%, while 10.7% believe conditions will worsen (also up from November’s 7%).

In November 2024, no respondents evaluated the US economy as “excellent” while in December this jumps to 7.1%. Currently 89.3% evaluate the economy as being “fair” (a dip from 96.7% in November).

The survey also reveals 46.4% of respondents believe their company will increase spending on business development activities in the next six months, up from 36.7% in November.

One survey respondent, David Normandin, president of Wintrust Speciality Finance believes there is reason to be confident about the future of the sector.

“Over the last year, the equipment finance industry has witnessed changes in liquidity, volatile swap rates, higher delinquency, and credit charges returning to a more normalised state,” Normandin adds. “Through this, we have adapted and created better solutions to meet our customers’ needs. 

“Now that the election is over and the Fed has begun cutting rates, I think there is more surety for businesses to confidently invest in their business. This will create good opportunities for the equipment finance industry in 2025.”