Home / Business and Economy / US Companies Boost Equipment Loans by 30% Annually
US Companies Boost Equipment Loans by 30% Annually
24 Feb
Summary
- New equipment financing reached its highest dollar amount in two decades.
- January saw a 30.1% year-over-year increase in equipment financing.
- AI investment is expected to drive continued strong growth in financing.
In January, U.S. companies dramatically increased their borrowing for equipment purchases, marking a 30.1% rise from the previous year. This surge propelled the financing to its highest dollar volume in the last two decades.
New loans, leases, and lines of credit totaled $11.6 billion on a seasonally adjusted basis. This figure represents a 7.8% increase from the prior month, signaling robust business confidence.
Activity within banks saw a 11.7% decrease from December, though overall financing remains strong. The Equipment Leasing & Finance Foundation's confidence index climbed to 67.6 in February, its highest point since January 2025.
Leaders are optimistic that ongoing investments in artificial intelligence will sustain this upward trend in new financing, even if interest rate cuts are delayed. Small-ticket volume growth, a key economic indicator, also showed a healthy 5.5% increase in January.
