The Equipment Leasing & Finance Foundation released the June 2025 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). Overall, confidence in the equipment finance market is 58.2, a return to historically more positive levels after dramatic lows in April and May. The index reports a qualitative assessment of both the prevailing business conditions and future expectations as reported by key executives from the $1.3 trillion equipment finance sector.
“As companies are getting a better feel for where tariffs will land, it’s very plausible we’ll see pent-up demand begin to release, backlogged or postponed purchases resurface and a shift in financing behavior,” Jim DeFrank, executive vice president and chief operating officer of Isuzu Finance of America, said. “Leasing in particular could spike, as companies look to preserve cash while still upgrading assets.”
June 2025 Survey Results
The overall MCI-EFI is 58.2, up from the May index of 44.5.
- Business Conditions: When asked to assess their business conditions over the next four months, 29.6% of the executives responding said they believe business conditions will improve over the next four months, an increase from 4% in May. 59.3% believe business conditions will remain the same over the next four months, up from 52% the previous month. 11.1% believe business conditions will worsen, down from 44% in May.
- CapEx Demand:6% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 8% in May. 55.6% believe demand will “remain the same” during the same four-month time period, up from 44% the previous month. 14.8% believe demand will decline, a decrease from 48% in May.
- Access to Capital:5% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, up from 4.2% in May. 81.5% of executives indicate they expect the “same” access to capital to fund business, down from 95.8% the previous month. None expect “less” access to capital, unchanged from May.
- Employment: When asked, 33.3% of the executives report they expect to hire more employees over the next four months, an increase from 24% in May. 66.7% expect no change in headcount over the next four months, down from 72% last month. None expect to hire fewer employees, down from 4% in May.
- S. Economy: None of the leadership evaluate the current U.S. economy as “excellent,” unchanged from May. 96.3% evaluate the economy as “fair,” up from 84% the previous month. 3.7% evaluate it as “poor,” down from 16% in May.
- Economic Outlook:6% of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, up from 12% in May. 51.9% indicate they believe the U.S. economy will “stay the same” over the next six months, up from 44% last month. 18.5% believe economic conditions in the U.S. will worsen over the next six months, a decrease from 44% the previous month.
- Business Development Spending: In June, 18.5% of respondents indicate they believe their company will increase spending on business development activities during the next six months, down from 32% the previous month. 77.8% believe there will be “no change” in business development spending, an increase from 64% in May. 3.7% believe there will be a decrease in spending, relatively unchanged from last month.
June 2025 MCI-EFI Survey Comments from Industry Executive Leadership
Bank, Small Ticket
“As tariff talks continue to ping pong back and forth, one thing is clear: businesses continue to grow and demand financing,” Charles Jones, senior vice president, 1st Equipment Finance, said. “Tired of the ‘wait and see’ approach, many are pulling the trigger and looking forward.”
“Fundamentals in the market remain positive. 2025 has been a good year for many equipment finance companies and the possibility for incremental improvement is visible,” David Normandin, CLFP, president and CEO of Wintrust Specialty Finance, said. “I expect to realize a solid growth year in 2025.”
Independent, Middle Ticket
“Tariffs and subsequent economic pressures related to supply chain issues and inflation will slow down equipment purchases,” Jeffry Elliott, CLFP, CEO of Elevex Capital, said. “However, a slowdown may limit competitive capital in the equipment finance space and allow for more opportunities at higher margins for independent lessors.”
