Investment in equipment and software is projected to expand 9.1% in 2018 according to the 2018 Equipment Leasing & Finance U.S. Economic Outlook released by the Equipment Leasing & Finance Foundation.
The annual investment growth projection, which is well above the estimated 5.2% growth rate experienced in 2017, continues the strong improvement trajectory seen over the last 12 months. While a few headwinds persist, they should be outweighed by an encouraging business investment climate.
Ralph Petta, president of the foundation and president and CEO of the Equipment Leasing and Finance Association, said, “This forecast for higher-than-expected growth in capital equipment investment is indeed good news. Business conditions appear favorable heading into the new year, with Washington poised to enact lower corporate tax rates and the economy continuing to grow slowly and steadily. Equipment finance organizations we talk to are bullish about 2018 growth projections for the industry.”
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. Most equipment verticals should expect their growth outlook to improve in 2018 relative to 2017. Over the next three to six months:
The foundation produces the Equipment Leasing & Finance U.S. Economic Outlook report in partnership with economics 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.
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