Confidence Steadies in Equipment Finance: What’s Fueling Industry Optimism

Confidence in the equipment finance sector remained resilient this October, with industry executives signaling steady optimism despite economic headwinds. According to the latest Equipment Leasing and Finance Foundation Monthly Confidence Index, confidence scored 60.1, up slightly from September’s 59.9, marking five consecutive months of positive sentiment in the $1.3 trillion market.​

Key Insights of Equipment Finance

• Over a third (37.5%) of industry leaders expect business conditions to improve through early 2026, and more than half (54.2%) anticipate stability for the rest of 2025.​

• Almost a quarter (25%) foresee easier access to capital, while employment expectations softened slightly, with only 25% planning new hires (down from September’s 36.4%).​

• Steady portfolio performance and solid demand for equipment leasing and loans are cited as primary drivers of confidence.​

What’s Driving the Optimism?

The sector’s resilience is underpinned by pent-up corporate spending and healthy demand from utility, construction, and manufacturing clients. Recent policy shifts, like bonus depreciation and anticipated interest rate cuts, are beginning to provide additional tailwinds, especially for businesses investing in capital equipment assets.​

Broader Context: Navigating Headwinds

Despite optimism, leaders continue to monitor challenges such as rising tariffs, shifting interest rate environments, and supply chain volatility. Yet, ongoing year-to-date growth in new business volume and portfolio stability signal that demand for equipment financing remains on firm footing. The industry's ability to adapt to these external shocks underscores the importance of equipment finance as a flexible, business-critical solution in an unpredictable economy.