The January equipment confidence index is upThe January Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) has jumped 6.3 points month-on-month (m-o-m) to be 64.6, the highest the index has been since February 2025.
The MCI-EFI is produced by the Equipment Leasing & Finance Association (ELFA) and provides a qualitative assessment from key executives in the USD1.3 trillion equipment finance industry.
“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 ELFA states.
A jump of 6.3 points for January's MCI-EFI shows there is a strengthening of confidence in the equipment finance industry to start off the year.
Confidence has jumped in equipment finance sector
Of the survey respondents, assessing business conditions over the next four months, 34.6% believe conditions will improve, a significant jump from December’s 12.5%
Those who believe business conditions will remain the same over the next four months declined to 57.7% from 75% the previous month. The percentage of executives who believe business conditions will worsen also declined to 7.7% from 12.5% in December.
“Of the respondents, 3.9% evaluate the current US economy as ‘excellent’, up from none in December,” the ELFA states. “96.2% assess it as ‘fair’, down from 100% last month; and none evaluated it as ‘poor’, unchanged from December.
“Over the next six months, 30.8% of respondents believe that US economic conditions will ‘get better’, a marked increase from 12.5% in December.
“Another 61.5% expect the US economy to ‘stay the same’, up from 58.3%; and 7.7% believe economic conditions will worsen, a dramatic decline from 29.2% last month.”
Survey respondent Jim DeFrank, EVP and chief operating officer with Isuzu Finance of America, says: “We observed an increase in December that has continued into January”.
“We believe the improved interest rate environment has contributed to this momentum,” DeFrank adds. “Additionally, we suspect that a ‘tariff pre-buy’ effect is occurring, as customers accelerate purchasing decisions ahead of potential cost increases.”
James D Jenks, CEO, Global Finance and Leasing Services says: “As interest rates and the economy improve in 2026, the equipment finance industry will likely be facing more competition from banks, the larger independents and new entrants”.