Upcoming Event
Free Newsletter
US business equipment borrowings fall 4.4% in November
Megavarshini G. Somasundaram
Reuters //December 22, 2025//
People walk around the Financial District near the New York Stock Exchange (NYSE) in New York, U.S., December 29, 2023. REUTERS/Eduardo Munoz
People walk around the Financial District near the New York Stock Exchange (NYSE) in New York, U.S., December 29, 2023. REUTERS/Eduardo Munoz
US business equipment borrowings fall 4.4% in November
Megavarshini G. Somasundaram
Reuters //December 22, 2025//
Reuters – U.S. companies borrowed 4.4% less to finance equipment investments in November compared with the same period a year earlier, the Equipment Leasing and Finance Association (ELFA) said on Monday.
In Brief:
- US business equipment borrowings fell 4.4% year over year in November.
- Total new loans, leases and credit lines reached $10.3 billion.
- Borrowing activity declined across banks, captives and independents.
- ELFA expects lower interest rates to support demand in 2025.
New loans, leases and lines of credit signed up by companies in November were $10.3 billion on a seasonally adjusted basis, down slightly from the prior month.
The Washington-based trade association, which tracks economic activity in the equipment sector valued at more than $1 trillion, said activity at all three institution types declined in November.
New deal growth at banks slipped 1% to $4.9 billion, while captive volumes fell 9.3% to $2.9 billion and independents dropped 12.9% to $1.9 billion.
Financial conditions remain healthy, suggesting the sector will not be materially affected if borrowing costs remain near current levels next year, according to the report.
“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,” ELFA President and CEO Leigh Lytle said.
The ELFA CapEx Finance Index of leasing and finance activity is based on a 25-member survey, including Bank of America as well as the financing units of Caterpillar, Dell Technologies, Siemens AG, Canon and Volvo AB.
The Equipment Leasing & Finance Foundation’s, ELFA’s non-profit affiliate, confidence index remains steady at year end at 58.3 from 59.9 in November. A reading above 50 indicates a positive business outlook.
(Reporting by Megavarshini G. Somasundaram in Bengaluru; Editing by Tasim Zahid)
-
