Stock Markets April 27, 2026 03:07 PM

Equipment Finance Activity Climbs Year-on-Year, But Short-Term Demand Shows Strain

ELFA reports a 12.5% rise in equipment borrowing in March to $10.8 billion as small-ticket transactions and confidence dip

By Nina Shah BAC CAT DELL
Equipment Finance Activity Climbs Year-on-Year, But Short-Term Demand Shows Strain
BAC CAT DELL

U.S. equipment financing rose 12.5% year-on-year in March to $10.8 billion, according to the Equipment Leasing and Finance Association (ELFA). The association’s survey of 25 members - including major banks and manufacturer financing units - also showed a 1.8% decline in new loans, leases and lines from February, a 17.7% drop in small-ticket volume, and a pullback in lender confidence in April.

Key Points

  • Equipment borrowing rose 12.5% year-on-year in March to $10.8 billion, per ELFA.
  • Month-over-month new loans, leases and credit lines declined 1.8% from February; small-ticket volume dropped 17.7% to $3.4 billion, below the 12-month average.
  • ELFA’s confidence index fell to 54.6 in April from 61 in March, the lowest reading since May 2025.

U.S. companies increased their equipment borrowings by 12.5% in March compared with the same month a year earlier, reaching $10.8 billion, the Equipment Leasing and Finance Association (ELFA) said. The association compiles data from a panel of 25 members that together represent more than $1 trillion in industry volume.

The respondent group includes major financial institutions and manufacturer financing arms such as Bank of America (BAC) and the financing units of Caterpillar (CAT), Dell Technologies (DELL), Siemens (SIEGn), Canon (7751) and Volvo AB (VOLVb), according to ELFA.

Despite the annual gain, activity cooled slightly month-over-month. ELFA reported that new loans, leases and lines in March were down 1.8% from February.

A pronounced decline showed up in small-ticket transactions, which are often viewed as a barometer for broader economic activity. Small-ticket volume fell 17.7% to $3.4 billion in March, placing it below its 12-month average of $3.6 billion.

ELFA President Leigh Lytle noted that the full effects of the Middle East conflict have yet to appear in the association’s data and said she expects demand to soften as the summer approaches. Her comments underline an uncertain near-term outlook for equipment finance demand.

Sentiment among ELFA members weakened in April. The association’s confidence index dropped to 54.6 from 61 in March, marking its lowest reading since May 2025.


Contextual notes - The ELFA survey represents a subset of industry participants and reflects the responses of those 25 reporting members. The data cited above are the association’s reported figures and the accompanying statements from its president.

Risks

  • Unclear near-term impact of the Middle East conflict on equipment finance demand - could affect sectors that rely on new equipment purchases or leasing, including manufacturing, construction and technology.
  • Weakened lender confidence and falling small-ticket volumes indicate potential softening in short-term demand for smaller equipment loans - impacting commercial banks and specialty finance units that underwrite these deals.
  • Month-over-month decline in new loans, leases and lines suggests vulnerability to slowing activity heading into summer - this could affect original equipment manufacturers and their captive finance arms.

More from Stock Markets

After-Hours Movers: Mixed Earnings Drive Big Swings in SANM, BBBY, LC, RMBS, NUE, SEI Apr 27, 2026 Bovespa Falls 0.61% as Real Estate, Consumption and Utilities Stocks Weigh on Market Apr 27, 2026 Toronto market retreats as materials and consumer names slide; S&P/TSX Composite down 0.25% Apr 27, 2026 Mixed U.S. Market Close Sees Tech, Financials, Utilities Offset by Weakness in Consumer Services and Healthcare Apr 27, 2026 U.S. Treasuries Slip After Tepid Auctions; Markets Turn Attention to FOMC Apr 27, 2026