US Product Rental and Leasing Sector NAICS 532

Jul 6, 2026 - Construction Industry Confidence Holds Steady in Q2

• Construction industry confidence held steady in the second quarter, with Engineering News-Record's (ENR) Construction Industry Confidence Index remaining at 54 and its Economic Index staying at 48 for a third consecutive quarter. Index readings of 50 or more suggest a healthy industry. Executives reported weaker views of the current market but slightly improved expectations for the next 12 to 18 months. General contractors and construction managers were the most confident, while design firms improved and subcontractors slipped. Larger firms remained more optimistic than smaller ones. More than 75% of ENR respondents reported upward price pressure. Industry watchers suggest inflation, higher rate expectations, and materials costs are weighing on contractors, though strong demand, especially for data centers, continues to support the market.
• The Equipment Leasing and Finance Association’s (ELFA) Monthly CapEx Finance Index (CFI) showed new business volume decreased 2.3% to $10.2 billion in May 2026 compared to the same month in 2025. ELFA President and CEO Leigh Lytle said, "Equipment demand cooled for a fourth consecutive month in May, but the overall level of new activity is still above its 2025 average pace. We’re still headed for the strongest year on record, and I expect demand to remain solid over the second half of the year. Delinquencies picked up, but continue to hover in a narrow band, and the average loss rate fell for a second consecutive month. Our data continue to point to healthy financial conditions in the industry, which will continue to serve as a buffer should we encounter additional surprises in 2026."

• According to the Associated Press, rising travel costs driven by higher fuel prices, inflation, and global uncertainty are likely to weigh on travel spending as consumers rethink vacation plans. Overall travel spending is expected to grow just 1% in 2026, according to the US Travel Association. Many Americans are shifting to shorter, closer-to-home trips or cutting travel altogether, reducing the need for extended car rentals. Higher gasoline prices and rising costs for airfare, lodging, and dining are forcing travelers to seek lower-cost alternatives, including buses, trains, or shorter driving distances. Analysts describe a "K-shaped" trend, with higher-income households maintaining travel habits while lower-income consumers scale back. A reduction in US travel spending could soften rental car demand in price-sensitive segments.
• Two leading players in the equipment rental industry posted solid Q1 2026 results, driven by strong year-over-year revenue growth. United Rentals reported total revenue up 7.2% to $4.0 billion, with rental revenue rising 8.7% to $3.4 billion, driven by higher rates, fleet expansion, and improved utilization. Net income increased 2.5% to $531 million despite some margin pressure. Having completed the integration of its H&E Equipment Services acquisition, Herc Rentals delivered stronger top-line gains, with total revenue jumping 32.3% to $1.1 billion and rental revenue up 32.7% to $981 million. Large construction projects and network expansion supported growth, though profitability declined as Herc's net loss widened to $24 million from $18 million a year earlier.