Q3 Economic Outlook Forecasts 5% Growth in Equipment and Software Investment

WASHINGTON, D.C. — Investment in equipment and software is expected to grow 5 percent in 2015, according to the Q3 update to the 2015 Equipment Leasing & Finance U.S. Economic Outlook recently released by the Equipment Leasing & Finance Foundation. As the U.S. economy rebounds from a disappointing Q1, the report predicts that business confidence will improve, which should encourage greater investment over the second half of 2015. The outlook for 12 individual equipment and software verticals tracked in the report is mixed, with some sectors outperforming others. The Foundation's Economic Outlook, 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 :

• Investment in equipment and software is expected to grow 5 percent in 2015, down from 5.8 percent in 2014.
• GDP is expected to grow 2.6 percent in 2015.
• Credit availability and demand continue to gradually rise.
• The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor, which is included in the report and tracks 12 equipment and software investment verticals, forecasts the following equipment investment activity:
  •   Agriculture machinery investment growth will likely remain weak or negative over the next 3-6 months.
  •   Construction machinery investment growth should remain steady over the next 3-6 months.
  •   Materials handling equipment investment growth could slow over the next 3-6 months.
  •   All other industrial equipment investment growth may decline further over the next 3-6 months.
  •   Medical equipment investment growth is expected to remain strong over the next 3-6 months.
  •   Mining and oilfield machinery investment should remain weak over the next 3-6 months.
  •   Aircraft investment growth may remain steady or moderate slightly over the next 3-6 months.
  •   Ships and boats investment growth may moderate in the next 3-6 months.
  •   Railroad equipment investment growth rates may decline over the next 3-6 months.
  •   Trucks investment growth could ease somewhat over the next 3-6 months.
  •   Computers investment growth rates should remain steady over the next 3-6 months.
  •   Software investment growth will likely remain stable over the next 3-6 months.

The Foundation will host a one-hour webcast at 1 p.m. EDT on July 15 on the Outlook report results and how to use the data to improve business decision-making. To register, email Foundation@LeaseFoundation.org.

Download the full report at www.leasefoundation.org/research/eo/.