Q2 Economic Outlook Forecast 5% Growth in Equipment, Software
Investment in equipment and software is expected to grow 5 percent in 2015, according to the Q2 update to the 2015 Equipment Leasing & Finance U.S. Economic Outlook released by the Equipment Leasing & Finance Foundation.
The Foundation lowered its 2015 equipment and software investment forecast to 5 percent, down from 6 percent growth forecast in its 2015 Annual Outlook released in December 2014. The report predicts that an overall expansion in the economy will encourage both large and small businesses to increase capital spending this year, although at a slightly slower pace than in 2014. The Foundation’s report, which is focused on the $903 billion equipment leasing and finance industry, forecasts 2015 equipment investment and capital spending in the United States and evaluates the effects of various industry and external factors likely to affect growth over the next 12 months.
Highlights from the study include:
• GDP is expected to grow 3.1% but oil markets are a wild card, as sustained low prices could provide a significant boost to the economy despite hurting investment in certain equipment sectors.
• Equipment and software investment was subdued in the fourth quarter of 2014, slowing from 10.5% in Q3 to just 1.6% in Q4. Growth for all of 2014, however, was 5.8%.
• Agriculture machinery investment growth will likely remain negative over the next three to six months.
• Construction machinery investment could pick up over the next three to six months.
• Materials handling equipment investment growth should remain steady over the next three to six months.
• Mining and oilfield machinery investment should continue to decline in the next three to six months.
Download the full report at www.leasefoundation.org/research/eo/
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