The Equipment Leasing and Finance Foundation has released its 2013 Equipment Leasing and Finance U.S. Economic Outlook report, focusing on the $725-billion equipment leasing and finance industry.
William G. Sutton, CAE, president of the Foundation and president and CEO for the Equipment Leasing and Finance Association, said, “The 2013 Equipment Leasing and Finance U.S. Economic Outlook projects positive but muted growth in equipment investment through the beginning of 2013, as policy uncertainty continues to weigh on business confidence.”
This release will forecast equipment investment and capital spending in the United States, while discussing all effects and external factors that are involved.
It was revealed that the equipment and software investment is presently at below-average rate of 2.9 percent, due to weak demand and fiscal uncertainty.
The report for investments in 2013 depends on the resolution of the fiscal cliff, which may encourage businesses or even have a negative effect. After the fiscal challenges are resolved, it’ll take some time for businesses to regain confidence.
It is expected that in the third and fourth quarters of 2013, investments in equipment and software will see a significant boost.
“However,” Sutton added, “if policymakers find a solution to key fiscal issues, we expect businesses will feel more confident in the second half of the year, leading to increased equipment investment.”
Trends in equipment investment include those expected to be made in agriculture, which will descend in Q1 2013. Investments in computers and software equipment are projected to stagnate for the next three to six months.
Regarding construction equipment investments, the average growth will be about 15 percent as the housing market is showing positive trends.
Investments in industrial equipment will grow, but slowly, while manufacturing demonstrates stronger growth in the second half of 2013. Medical equipment investment growth will increase slowly in the following months.
Investments in transportation equipment will also moderate around 10 percent over the next three to six months, forecasts the report.
The Equipment Leasing and Finance Foundation has produced the report in partnership with economics and public policy consulting firm, Keybridge Research. It provides data while showcasing investment trends in key equipment markets, credit market conditions, the U.S. macroeconomic outlook and key economic indicators.
Similarly, the Equipment Leasing and Finance Association released its quarterly update to its 2012 Equipment Leasing & Finance U.S. Economic Outlook in October 2012, which focused on the $628-billion equipment leasing and finance industry.
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Edited by Braden Becker