U.S. businesses closed out the year with a strong push toward equipment investment, boosting borrowing activity to one of its highest levels on record. US companies increased borrowing for equipment by more than 5% in December, according to ELFA, signaling renewed confidence in capital spending despite lingering economic uncertainty.
Data released Monday by the Equipment Leasing and Finance Association (ELFA) showed that companies borrowed 5.9% more in December than they did a year earlier to fund machinery and equipment purchases. The surge lifted financing volumes to the second-highest level ever recorded by the group.
New loans, leases, and credit lines signed during the month reached $10.6 billion on a seasonally adjusted basis, climbing from November’s totals. However, activity at banks slipped slightly, declining 1.2% from the previous month, even as overall demand remained strong.
ELFA President and Chief Executive Officer Leigh Lytle said the industry has shown remarkable resilience in the face of economic turbulence. “The data show that the equipment finance industry has not only weathered but thrived amid historic uncertainty,” she said. Looking ahead, Lytle noted that while some market swings are expected in 2026, conditions remain favorable. Anticipated interest rate cuts later this year could further support borrowing and investment.
The association’s CapEx Finance Index is compiled from a monthly survey of 25 major lenders and manufacturers, including Bank of America, Caterpillar, Dell Technologies, Siemens, Canon, and Volvo. Together, they represent a sector valued at more than $1 trillion.
Optimism is also growing among industry leaders. The Equipment Leasing & Finance Foundation, ELFA’s nonprofit affiliate, reported that its confidence index climbed to 64.6 in January, up sharply from 58.3 in December. Since readings above 50 reflect a positive outlook, the latest figure suggests expectations for continued growth in business spending.
With borrowing strong and sentiment improving, the equipment finance industry appears positioned for another active year as companies modernize operations and expand capacity.
