(Reuters) - U.S. companies borrowed 11% more to finance equipment investments in May compared to a year ago, industry body Equipment Leasing and Finance Association (ELFA) said on Tuesday.

Companies signed up for new loans, leases and lines of credit worth $10.2 billion in May, down 7% from a month ago.

"The drop in volume from April could be an indication that some businesses are holding off on acquiring equipment until interest rates come down," ELFA President and CEO Leigh Lytle said.

The Washington-based company, which reports economic activity for the over $1-trillion equipment finance sector, said credit approvals for U.S. companies in May were 75%, unchanged from April.

ELFA's non-profit affiliate, the Equipment Leasing & Finance Foundation, said its confidence index for June stood at 50.2, down from 50.7 in May. A reading above 50 indicates a positive business outlook.

ELFA's leasing and finance index is based on a 25-member survey, including Bank of America ( BAC ) and financing units of Caterpillar ( CAT ), Dell Technologies ( DELL ), Siemens AG, Canon Inc ( CAJFF ) and Volvo AB.