(Reuters) - U.S. companies borrowed 4.4% less to finance equipment investments in April compared with the same period from the year earlier, the Equipment Leasing and Finance Association (ELFA) said on Wednesday.

"Demand for new equipment eased a little, but remained healthy, especially given all the April ups and downs", President and CEO Leigh Lytle said.

New loans, leases and lines of credit signed up by companies in April cooled to $10 billion from $10.2 billion the previous year.

The Washington-based trade association, which reports economic activity for the more than $1 trillion equipment finance sector, also said April's credit approval rate jumped to 77.4%, reaching its highest level in more than two years.

The ELFA CapEx Finance Index of leasing and finance activity is based on a 25-member survey, including Bank of America ( BAC ) as well as financing units of Caterpillar ( CAT ), Dell Technologies ( DELL ), Siemens AG, Canon, and Volvo AB.

ELFA's non-profit affiliate, the Equipment Leasing & Finance Foundation, said its confidence index for May stood at 44.5, up from 41.9 in April. A reading above 50 indicates a positive business outlook.