Investment in equipment and software is projected to expand 4.1% in 2019 according to the 2019 Equipment Leasing & Finance U.S. Economic Outlook released by the Equipment Leasing & Finance Foundation.
Equipment and software investment increased at a robust rate in the first half of 2018, driven by more preferable tax treatment and a general upswing in the U.S. economy. However, growth slowed in the third quarter and recent data point to a continuation of this trend, providing a weak jumping off point for 2019. The economy remains generally healthy, yet the strong growth achieved in Q2 and Q3 is unlikely to be repeated in 2019 as headwinds build.
Jeffry D. Elliott, Foundation chairman and senior managing director of Huntington Equipment Finance, said, “Business conditions in the equipment finance industry remain favorable for the most part, and the majority of equipment verticals should post moderate investment growth for at least the first half of the year.”
Highlights from the study include:
The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor, which is included in the report, tracks 12 equipment and software investment verticals. In addition, the “Momentum Monitor Sector Matrix” provides a customized data visualization of current values of each of the 12 verticals based on recent momentum and historical strength. Several equipment verticals should expect their growth outlook to remain steady in the first half of 2019. Over the next three to six months:
The Foundation produces the Equipment Leasing & Finance U.S. Economic Outlook report in partnership with economic and public policy consulting firm Keybridge Research. The annual economic forecast provides a three-to-six-month outlook for industry investment with data, including a summary of investment trends in key equipment markets, credit market conditions, the U.S. macroeconomic outlook, and key economic indicators.
The report will be updated quarterly throughout 2019.
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