Equipment purchasing index declines in November

The Washington-based Equipment Leasing & Finance Association (ELFA) says its CapEx Finance Index (CFI) for November 2025 shows the combined new business volume (NBV) of surveyed ELFA member companies fell by 4.4 percent compared with November 2024 activity.

The CFI figure for last month also was down 2.1 percent compared with activity in October of this year. Nonetheless, says ELFA, “Equipment finance growth is still on pace for one of the industry’s strongest years on record.”

The organization says more than 80 percent of American businesses use at least one form of financing for their commercial equipment acquisitions, making equipment finance activity an important yardstick.

Overall, says ELFA, “Market volatility and a slowing economy have not affected equipment demand, which is heading into 2026 with significant momentum after the [Federal Reserve Bank of the United States] decided to lower rates again at the December Federal Open Market Committee (FOMC) meeting.”

In November, the NBV among surveyed ELFA member companies was $10.3 billion on a seasonally adjusted basis, down slightly from the prior month, causing the 4.4 percent year-on-year decline.

“Demand for equipment remained strong in November [and] new business volumes topped $10 billion for the fourth straight month,” says Leigh Lytle, president and CEO of ELFA.

“We’re still on pace for one of our strongest years on record, and we expect that the Fed’s decision to lower the federal funds rate by 75 basis points in 2025 will bolster momentum for equipment demand next year,” continues Lytle. “Even though policymakers may be done cutting for a while, the November financial data showed that delinquencies and losses remain relatively low, indicating that the industry is well positioned for current financial conditions.”

While new activity declined by 2.1 percent in November compared with October, activity remained above its trailing six-month average of $10.1 billion, says ELFA.

Total new activity is on pace to reach $114.4 billion in 2025, which ELFA says is slightly down from its all-time high in 2024 but “still well above the average in the second half of the pre-pandemic expansion.”

Continues ELFA, “Activity at all three institution types declined in November. New deal growth at banks edged down by 1.0 percent to $4.9 billion, while volumes at captives [financing firms owned by equipment makers] declined by 9.3 percent to $2.9 billion and new activity at independents declined by 12.9 percent to $1.9 billion.”

"Across the United States, demand continues to strengthen as companies reassess how they deploy capital amid rapid technological change,” says Wayne Fowkes of California-based CHG-Meridian.

ELFA describes itself as representing financial services companies and manufacturers in the $1.3 trillion U.S. equipment finance sector.