The CapEx Finance Index (CFI), which measures the amount of finance received for capital expenditure in the US, reveals new business volume (NBV) fell 7.7% year-on-year and 2.3% month-on-month in May, to be valued at USD10.2 billion.

However, this also represents an 11.5% year-to-date increase.

The CFI is produced by the Equipment Leasing & Finance Association (ELFA), which says more than eight out of 10 US businesses use financing for their commercial equipment acquisitions, so equipment finance industry activity is significant for companies across all industries. 

The ELFA says the May CFI reveals “industry financial conditions remained resilient”.

“Demand cooled but remained elevated compared to this time last year,” the ELFA states. 

“Industry financial conditions remained resilient even though inflation has picked up and the Fed has shown little interest in lowering rates this year. 

“The easing of hostilities in the Middle East could further boost demand and improve financial conditions over the second half of the year.”

Leigh Lytle, president and CEO at ELFA adds: “Equipment demand cooled for a fourth consecutive month in May, but the overall level of new activity is still above its 2025 average pace”.

“We’re still headed for the strongest year on record, and I expect demand to remain solid over the second half of the year,” Lytle continues. 

“Delinquencies picked up, but continue to hover in a narrow band, and the average loss rate fell for a second consecutive month. 

“Our data continue to point to healthy financial conditions in the industry, which will continue to serve as a buffer should we encounter additional surprises in 2026.”

 Equipment demand in the CFI is forecasted to reach USD128 billion in 2026, the highest level recorded in any year since the survey began in 2006.

 Small ticket volume growth tracks broader economic conditions and is an important barometer of aggregate demand for equipment. 

Small ticket deals grew by USD3.5 billion, down 1.3% from March. Year-to-date, small ticket deal activity is up 29.9% from the same period in 2025.

The overall delinquency rate rose to 2.1% in May.

Linda Redding, managing director and head of equipment finance at JP Morgan says: “Underlying equipment demand remains resilient, though clients are taking a more measured, deliberate approach as higher interest rates and ongoing macro and geopolitical uncertainty weigh on decision making and extend deal timelines”.

“Inflation expectations and policy-related factors, such as tariffs and regulatory changes, also continue to influence project economics in many sectors. 

“Increasingly, our clients are seeking out industry experts and research to help guide timing and structure to ensure they are accounting for all possible variables prior to execution. Looking through year-end, we expect activity to remain steady, supported by replacement-driven purchases and selective growth investments that can generate clear returns.”