The US Equipment Leasing & Finance Foundation’s September Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) is sitting at its highest level since January 2022, indicating confidence across the sector continues to gain momentum.

The September MCI-EFI is 61.9, an increase from August’s 58.4 and a steep rise from September 2023’s index of 50.3.

The survey also reveals 40% of executives in the equipment leasing and finance sector surveyed, believe business conditions will improve in the next four months, up from 37.5% in August. Those who believe conditions will remain unchanged have increased to 52% (from August’s 45.8%) and those who feel it will worsen account for 8% of respondents, a significant fall from August’s 16.7%.

The survey also found 44% of responded believe demand for leases and loans to fund capital expenditure (capex) will increase over the next four months, up from 41.7% in August. More than half of respondents believe demand will remain stable (52% up from 37.5%), while 4% believe demand will fall, a sharp drop from 20.8% in August.

Surbey respondent Nancy Pistorio, president of Madison Capital, says political and economic uncertainty have played a part in diminishing confidence, but this is expected to shift.

“Many firms, particularly small and medium-sized businesses, have been delaying equipment purchases, citing continued high interest rates and uncertainty about the economy amplified by the upcoming election,” Pistorio adds. 

“This ‘let’s wait and see what happens’ mindset has contributed to diminished demand for equipment financing. Assuming the Federal Reserve lowers rates this fall, and once the election is behind us, I think we will begin to see an increase in business volumes.

"Barring any prolonged adverse reaction from the financial markets to the election outcome, I anticipate a more robust December and first quarter 2025 for our industry.”