Equipment, Software Investment Projected to Fall in Q4
If you’ve been holding out for your office to finally upgrade that old printer/copier in the corner, chances are that you’ll be waiting a little while longer.
According to the Equipment Leasing & Finance Foundation, fourth-quarter investment toward equipment and software is projected to grow 6.7 percent in the fourth quarter compared to spending in fourth quarter 2011. That percentage is still down from 11 percent growth last year. Annualized growth averaged 5.1 percent through the first half of the year.
“While growth in equipment and software investment is continuing, the pace of growth has decelerated,” William Sutton, president of the foundation, said in a release.
The foundation projected sluggish growth between 1-3 percent for computer and software equipment investment. Medical equipment investment is also expected to grow marginally.
Some sectors have shown significant improvement, however, with construction equipment spending and transportation equipment investment each projected to grow at 15 percent or more through the final quarter of 2012. Still, political and economic uncertainty is negatively affecting industry spending.
“Especially in the area of tax and budget policy, (uncertainty) continues to hamper business investment,” Sutton said.