Negative Q4 Growth in Equipment and Software Investment Forecast

Investment in equipment and software is expected to contract -0.5 percent in 2016, according to a Q4 update to the 2016 Equipment Leasing & Finance U.S. Economic Outlook released by an industry group.

The Equipment Leasing & Finance Foundation lowered its forecast to -0.5 percent, down from 0.9 percent growth forecast in its Q3 Update to the 2016 Annual Outlook released in July. After contracting during the first two quarters, the new report forecasts modest equipment and software investment growth for the rest of 2016, as economic headwinds continue to weigh on investment spending and confidence.

The Economic Outlook, 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.

Ralph Petta, President of the Foundation and President and CEO of the Equipment Leasing and Finance Association, said, “The softer growth numbers projected for 2016 reflect overall hesitancy on the part of business decision-makers to invest in equipment and software until the cloud that is the U.S. election cycle clears in November.  A potential wild card impacting 2017 investment growth is the Federal Reserve’s decision whether to increase short-term interest rates prior to year-end.”

Category: General Update