The February Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) dropped for the first time in four months to sit at 66.9, a dip of 2.7 points month-on-month.

The MCI-EFI is produced monthly by the Equipment Leasing & Finance Foundation (ELFF) and is a qualitative assessment of prevailing business conditions and future expectations. It is derived from survey responses from key executives in the USD1.3 trillion equipment finance sector.

The February survey revealed 53.6% of executives responding to the survey belief business conditions will improve in the next four months, down from the January figure of 57.1%; 10.7% believe business conditions will worsen in the same period, an increase from January’s 4.8%.

There was little change in the expected demand for leases and loans to fund capital expenditures with 46.4% of respondents believing it will increase, marginally down from January’s 47.6%.

Additionally, 48.2% believe US economic conditions will get “better” over the next six months, down from 52.4% in January, while 40.7% believe it will “stay the same” over the next six months, down from 47.6% last month.

When asked about the outlook for the future, MCI-EFI survey respondent David Normandin, president and CEO with Wintrust Specialty Finance, says he is optimistic about opportunities for 2025.

“Business confidence is strong, which will lead to additional investment into capital equipment,” Normandin adds. “Additionally, while inflation is still higher than desired, it is a marked improvement from the recent past. 

“With that said, delinquency and credit quality remain a challenge with bankruptcy rates continuing to rise and stress in consumer auto and credit card debt. 2025 may not be an easy year, but there will be opportunities to leverage if you are nimble and creative in solving challenges.”