Confidence in the equipment finance sector increased in May, according to new data released by the Equipment Leasing & Finance Association (ELFA), as executives reported improving expectations for business activity and capital expenditure financing.
ELFA’s Monthly Confidence Index for the Equipment Finance Industry rose to 59.9 in May 2026, up from 54.6 in April. The index tracks executive sentiment across the $1.3 trillion equipment finance market.
Survey respondents expressed stronger confidence in business conditions over the next four months. Approximately 27.3% of executives said they expect conditions to improve, up from 11.8% in April, while 63.6% expect conditions to remain unchanged. The percentage expecting worsening conditions fell to 9.1%.
Executives also reported improved expectations for financing demand tied to capital expenditures. According to ELFA, 26.1% of respondents anticipate increased demand for leases and loans used to fund equipment purchases, while none expect demand to decline.
The survey also found that 40.9% of executives plan to hire more employees over the next four months, while half expect staffing levels to remain unchanged.
Economic sentiment improved as well. About 30.4% of respondents said they expect U.S. economic conditions to improve during the next six months, compared to 15.8% in April.
Industry leaders pointed to both opportunities and challenges affecting the market.
“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.
“The first quarter was a solid start to the year in terms of new business volume with reasonable yields. Small business appears to be stressed as illustrated by materially increased Chapter 11 bankruptcy filings year over year. This is validated by slight increases in delinquency and normalized credit charges in this specific segment. I expect this to continue for much of 2026. With that said, volume and overall performance are strong and I expect Wintrust Specialty Finance will have a strong year in 2026 as illustrated by the start in Q1,” said David Normandin, CLFP, president and chief executive officer, Wintrust Specialty Finance.
ELFA represents more than 600 member companies involved in equipment financing and leasing throughout the United States.
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