Investment in equipment and software is expected to grow 4.8% in 2013, according to the Q3 update to the 2013 Equipment Leasing & Finance U.S. Economic Outlook, released by the Equipment Leasing & Finance Foundation. The foundation decreased its 2013 forecast from the 5.6% growth predicted in its Q2 Outlook, due to slightly slower than expected growth in investment in the first and second quarters. However, the Q3 report predicts equipment investment will grow steadily over the next six months across most verticals due to reduced policy uncertainty and strong underlying economic fundamentals. The report, which is focused on the $725 billion equipment leasing and finance industry, forecasts equipment investment and capital spending in the United States and evaluates the effects of various related and external factors in play currently and into the foreseeable future.
According to the foundation report, the U.S. economy is in its strongest position since the 2008-09 recession, but growth remains subpar. The economy continues to be buffeted by multiple headwinds, including high oil prices, weak global growth, fiscal consolidation and uncertainty about future fiscal reforms and other federal policies. However, the foundation reports that the underlying fundamental growth drivers of the U.S. economy are in better shape than in recent years. The report predicts growth will pick up in the second half of the year due to an improving housing market and auto sales, an energy renaissance, “reshoring” of manufacturing, improving credit availability and rising employment.
William G. Sutton, CAE, president of foundation and president and CEO of the Equipment Leasing and Finance Association, said, “In the Q3 U.S. Economic Outlook, we have adjusted our equipment investment growth projection to reflect the current environment. With the housing and energy sectors continuing to hold strong, we still expect the second half of the year to show growth, albeit more modestly than originally anticipated.”
Highlights from the study include :
Trends in equipment investment include :
Source: Crane & Rigging Hotline