June 24 (Reuters) - U.S. companies borrowed 3.7% less to

finance equipment investments in May compared with the same

period a year ago, the Equipment Leasing and Finance Association

said on Tuesday.

"The slow bite of tariffs may still emerge this summer, and

conflict abroad could impact energy prices and supply chains,"

ELFA CEO Leigh Lytle said.

Volumes for small-ticket deals sequentially surged 17.8%

during the month, rebounding sharply from an 18.3% decline in

April and marking the fifth straight month of double-digit

swings.

The Washington-based trade association, which monitors

economic activity in an equipment sector valued at over $1

trillion, reported that the credit approval rate in May slightly

declined to 77%, down from 77.4% in April.

The ELFA CapEx Finance Index of leasing and finance activity

is based on a 25-member survey, including Bank of America ( BAC )

and the financing units of Caterpillar ( CAT ) , Dell

Technologies ( DELL ), Siemens AG, Canon and

Volvo AB.

ELFA's non-profit affiliate, the Equipment Leasing & Finance

Foundation, sees a rise in its June confidence index to 58.2, up

from 44.5 in April, signaling a positive business outlook, as a

reading over 50 indicates optimism.