Investment in equipment and software is expected to grow 4.2% in 2014, according to the Q2 update to the 2014 Equipment Leasing & Finance U.S. Economic Outlook released by the Equipment Leasing & Finance Foundation.

The Foundation increased its 2014 equipment and software investment forecast to 4.2%, up from the 3.1% growth forecast in its 2014 Annual Outlook released in December 2013. The Q2 report expects equipment and software investment to steadily grow over the next six months as economic conditions solidify and business confidence continues to recover.

The Foundation report forecasts 2014 equipment investment and capital spending in the U.S. and evaluates the effects of various related and external factors in play currently, and into the foreseeable future.

William G. Sutton, CAE, president of the Foundation and president and CEO of the Equipment Leasing and Finance Association, said, “The Foundation’s Outlook report reflects a strengthening economy and positive trends in equipment investment. These findings align with data from the Equipment Leasing and Finance Association’s recent Monthly Leasing and Finance Index and the Foundation’s Monthly Confidence Index. We know the cold winter has had some negative impact on the economy; however, with reduced policy uncertainty, stronger economic fundamentals and replacement demand, we remain optimistic about growth.”

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 full Q2 report is available for download at www.leasefoundation.org/IndRsrcs/EO/.