Investment in equipment and software is expected to grow 2.8% in 2017, according to the Q2/17 update to the 2017 Equipment Leasing & Finance U.S. Economic Outlook from the Equipment Leasing & Finance Foundation.
The foundation lowered its 2017 equipment and software investment forecast to 2.8%, down from a 3% growth forecast in its 2017 Annual Outlook released in December 2016. The report predicts that equipment and software investment will improve in 2017 after a lackluster 2016, as renewed business confidence and firming energy prices lift the potential for business investment and CAPEX spending while reducing uncertainty.
The foundation’s report, which is focused on the $1 trillion equipment leasing and finance industry, highlights key trends in equipment investment and places them in the context of the broader U.S. economic climate. The report will be updated quarterly throughout 2017.
Ralph Petta, president of the foundation and president and CEO of the Equipment Leasing and Finance Association, said, “Our forecast for an improving equipment finance sector is based largely on actions coming out of Washington that indicate a more business-friendly approach by the new Trump Administration, the recent move by the Fed to gradually increase short-term interest rates, and early indications of a steadily growing economy. It is our hope that these factors do in fact provide impetus for the equipment finance industry this year to outperform 2016.”
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. Most equipment verticals should expect their growth outlook to improve in 2017 relative to 2016. 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.
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