Equipment Finance Confidence Rises in May, ELFA Reports

May 21, 2026 - Confidence in the equipment finance market increased in May, according to the latest Monthly Confidence Index (MCI) released by the Equipment Leasing & Finance Association (ELFA).

The May 2026 index rose to 59.9, up from 54.6 in April, reflecting stronger sentiment among executives in the $1.3 trillion equipment finance industry. The report provides a qualitative assessment based on responses from key industry leaders regarding business conditions, capital spending, employment and economic outlook.

According to the survey, 27.3% of executives expect business conditions to improve over the next four months, up from 11.8% in April. Meanwhile, 63.6% expect conditions to remain the same, while the percentage anticipating worsening conditions declined to 9.1% from 29.4% the previous month.

Expectations for capital expenditure financing also improved. ELFA reported that 26.1% of respondents believe demand for leases and loans to fund capital expenditures will increase over the next four months, compared to 10.5% in April. Additionally, 73.9% expect demand to remain stable, while no respondents forecast a decline.

Executives also reported a more positive economic outlook. About 30.4% of respondents said U.S. economic conditions are expected to improve over the next six months, nearly doubling from 15.8% in April. Another 47.8% believe conditions will remain unchanged, while 21.7% anticipate worsening conditions, down from 36.8% the prior month.

Employment expectations remained relatively steady, with 40.9% of executives planning to hire more employees over the next four months. Half of respondents expect staffing levels to remain unchanged.

Industry executives noted continued uncertainty around geopolitical developments, inflation and fuel costs, while also pointing to resilience in equipment finance demand.

“Despite geopolitical events and high oil, the economy is still reacting positively. In many ways, we are in unchartered territory. Though we are cautious about the future, we remain optimistic,” said Charles Jones, senior vice president, 1st Equipment Finance, Inc.

Jeffry Elliott, CLFP, CEO of Elevex Capital, said, “Energy shock, inflation and recessionary fears will reduce capex spending, but raise yields as conservative lenders pull back from lending, leaving less competition for remaining required capex spending. Some business models will thrive in this type of economy; equipment finance is one that can operate quite well.”

ELFA represents financial services companies and manufacturers in the U.S. equipment finance sector, with more than 600 member companies providing financing for equipment acquisitions across industries.