Report: U.S. Equipment Investment Expected to Stabilize or Improve
A recent slowdown in U.S. economic activity indicates that equipment investment continued to lose momentum in Q2, but forward-looking indicators suggest growth will stabilize and potentially improve in the second half of the year, according to the new quarterly update from the Equipment Leasing & Finance Foundation’s Equipment Leasing & Finance U.S. Economic Outlook. Projected growth in equipment and software investment for 2012 slowed to 6.4%, down from the previous projection of 6.9%.
The report focuses on the $628 billion U.S. equipment leasing and finance industry, including forecasting future equipment investment and capital spending in the United States. Equipment includes business, retail, manufacturing, construction, manufacturing, agricultural, and medical equipment.
William G. Sutton, CAE, president of the foundation and president and CEO of the Equipment Leasing and Finance Association, said that foundation data indicates growth is still being hampered by concerns over the European debt crisis and U.S. unemployment and regulatory and political uncertainty.
“However,” Sutton added, “we are cautiously optimistic that growth will pick up in the second half of 2012 and into 2013 due to improvements in the manufacturing and housing sectors and lower oil prices.”