Equipment finance confidence dips in April

Confidence in the equipment finance market fell in April to its lowest level in nearly a year as executives grew more cautious amid geopolitical and policy uncertainty.

The Monthly Confidence Index declined to 54.6 from 61 in March, reflecting softer sentiment across the $1.3 trillion industry following the announcement of universal tariffs and concerns tied to the war in Iran, according to today’s Equipment Leasing and Finance Association release. Still, confidence remains up compared to last April’s 31-month low of 41.9.

Expectations decline

Executives reported weaker expectations for business conditions over the next four months, as about 11.8% expect improvement, down from 29.2% in March. Meanwhile, 29.4% anticipate worsening conditions, up from 16.7%, and 58.8%, expect no change, up compared with 54.2% in March.

Demand for equipment financing also softened, with just 10.5% expecting CapEx demand to increase, down from 37.5%, while 21.1% foresee a decline, up from 12.5%, according to the release. Most, 68.4%, expect demand to remain steady, up compared with 50% last month.

The outlook for access to capital improved, with 31.6% expecting greater availability, up from 25%, while 5.3% expect reduced access. Views of the broader economy deteriorated, with 36.8% expecting conditions to worsen over the next six months, up from 25%, while 15.8% expect improvement.

The fourth annual Equipment Finance Connect, a crucial industry event for equipment lenders and dealers, takes place at the C. Baldwin Hotel in Houston May 18-19. Learn more about the event and register here.