After its strongest growth in more than a decade in 2021 and solid performance in Q1/22, equipment and software investment is forecasted to grow by 4.2% in 2022, according to the Q2/22 update to the 2022 Equipment Leasing & Finance U.S. Economic Outlook from the Equipment Leasing & Finance Foundation. The outlook also forecasted 2.8% growth in U.S. GDP in 2022.
“At such a volatile time, this report provides valuable intelligence on the wide range of conditions that are impacting the U.S. economy and business investment,” Nancy Pistorio, chair of the ELFF and president of Madison Capital, said. “While it is encouraging that jobs are plentiful, the housing market is strong and the pandemic is unlikely to be a major headwind unless a new variant emerges, the economic outlook is cloudier than it was at the start of the year. However, the equipment finance industry is still expected to expand at a moderate pace.”
Q2/22 Update Highlights
The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor, which is released in conjunction with the economic outlook, 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. According to these reports, seven verticals are peaking/slowing, four are accelerating and one is weakening. Over the next three to six months, on a year-over-year basis:
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