The Equipment Leasing & Finance Foundation’s (ELFF) Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) has dropped to its lowest level since October 2023 to be at 41.9 for April, a drop of 16.2 points from the March index of 58.1.

The index reports a qualitative assessment of prevailing business conditions and future expectations as reported by key executives from the USD1.3 trillion equipment finance sector. Index producer, the ELFF states about half of the survey responses were submitted prior to the tariff announcement on April 2.

When survey respondents were asked to assess their business conditions over the next four months, 15.4% say they believe they will improve, which is also a sharp drop from the March figure of 28.6%. 

The April survey also reveals 57.7% of respondents believe business conditions will worsen, up from 17.9% in March, a staggering increase of 39.8 points.

Soberingly, only 11.5% believe demand for leases and loans to fund capital expenditure will increase in the next four months, down from 32.1% in March, while 61.5% believe it will decline, an increase from 25% in March.

Survey respondent David Normandin, president and CEO with Wintrust Specialty Finance, remains optimistic despite the figures, saying new business volumes were strong for Q1, adding the pipeline continues the upward trend.

“Although there are many aspects of the market that are uncertain, our customers’ confidence levels remain high and that equates to further investments into their business that, in turn, is good for our industry,” Normandin continues. 

“We are paying close attention to portfolio performance and while the metrics are still good, they are elevated from previous years. We expect that to remain throughout 2025.”

James D. Jenks, CEO of Global Finance and Leasing Services, is less optimistic saying simply: “The uncertainty of what tariffs will or will not be put in place, and when, is not helping the economy in the near term”.