Q2 Outlook Forecasts 2.7% Growth in Equipment, Software Investment
Investment in equipment and software is expected to grow 2.7 percent in 2016, according to the Q2 update to the 2016 Equipment Leasing & Finance U.S. Economic Outlook released today by the Equipment Leasing & Finance Foundation. The Foundation lowered its 2016 forecast to 2.7 percent, down from 4.4 percent growth forecasted in December 2015.
The report predicts that equipment and software investment will expand modestly in 2016, as persistent headwinds—particularly a weak global economy and low commodity prices—curb business confidence and spending. The Foundation’s report, which is focused on the $1 trillion equipment leasing and finance industry, highlights key trends in equipment investment and places them in the context of the broader U.S. economic climate. The report will be updated quarterly throughout 2016. You can get the full report here.
The U.S. economy is expected to grow by a moderate 2.3 percent in 2016, roughly in line with the pace of growth over the past two years. Equipment and software investment is expected to expand a modest 2.7 percent in 2016vs. 3.8 percent growth last year.
The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor tracks 12 equipment and software investment verticals. Many equipment and software verticals are poised to moderate in coming months, yet pockets of solid growth can be found in others:
o Agriculture machinery investment growth should remain generally weak over the next three to six months.
o Construction machinery investment growth will likely slow further over the next three to six months.
o Materials handling equipment investment growth should remain weak over the next three to six months.
o Mining & oilfield machinery investment growth should stay weak over the near term.
o Trucks investment growth could slow over the next three to six months.
PRO CONTRACTOR RENTALS MAGAZINE
Pro Contractor Rentals provides information of value to rental centers who focus time, resources and attention on meeting the demands of construction contractors and other equipment rental customers.
