Equipment Finance Industry Confidence Reaches Three-Year High in December

The Equipment Leasing & Finance Foundation has released its monthly Confidence Index for the Equipment Finance Industry, noting that it reached a three-year high in December 2024. The index, which reflects executives' qualitative assessments of business conditions and future expectations in the $1.3 trillion equipment finance sector, increased to 68.8, up from November's 67.5.

Industry leaders remain optimistic about the future.

“Over the last year, the equipment finance industry has witnessed changes in liquidity, volatile swap rates, higher delinquency and credit charges returning to a more normalized state,” David Normandin, president and CEO of Wintrust Specialty Finance said.

“Through this, we have adapted and created better solutions to meet our customers’ needs. Now that the election is over and the Fed has begun cutting rates, I think there is more surety for businesses to confidently invest in their business. This will create good opportunities for the equipment finance industry in 2025.”

Key Findings From the December Survey

• Business Conditions: 57.1% of executives expect improved business conditions in the next four months, up from 43.3% in November.
• Demand for Capital Expenditures: 53.6% anticipate increased demand for equipment leases and loans, a rise from 48.3% last month.
• Employment Trends: Nearly half (46.4%) of respondents plan to hire more staff, up from 44.8% in November.
• U.S. Economy Outlook: Confidence in the U.S. economy is steady, with 53.6% predicting improvement over the next six months, though slightly down from November’s 60%