Investment in equipment and software is projected to expand 1.1% in 2020 while U.S. economic growth slows to 1.7% according to the 2020 Equipment Leasing & Finance U.S. Economic Outlook released today by the Equipment Leasing & Finance Foundation.
After decelerating over the course of 2019, the U.S. economy is poised to soften further in 2020. Equipment and software investment is likely to post its weakest year of growth since 2016, weighed down by the first annualized contraction in over three years in Q3. Several headwinds highlighted in last year’s Economic Outlook began to stunt growth in the second half of 2019 and are expected to continue dragging on business confidence and investment in early 2020.
Scott Thacker, Foundation chair and chief executive officer of Ivory Consulting Corporation, said, “After robust growth in 2018, equipment and software investment slowed markedly throughout 2019 and contracted in the third quarter as the effects of unresolved trade tensions and a slowing global economy took hold. However, a strong labor market and still-confident U.S. consumer base should keep the broader economy above water, even as investment in several key equipment verticals slows or remains weak.”
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 2020. 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 2020.
Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!
No categories available