Investment in equipment and software is expected to grow 5.6% in 2013, according to the Q2 update to the 2013 Equipment Leasing & Finance U.S. Economic Outlook released today by the Equipment Leasing & Finance Foundation. The Foundation increased its 2013 equipment and software investment forecast to 5.6 percent, up from 2.9 percent growth forecast in its 2013 Annual Outlook released in December 2012. The report, which is focused on the $725 billion equipment leasing and finance industry, forecasts equipment investment and capital spending in the United States and evaluates the effects of various related and external factors in play currently and into the foreseeable future.
The Q2 report predicts growth in the first half of the year will be limited by relatively weak demand and fiscal policy uncertainty. By the second half of 2013, however, investment activity is expected to accelerate due to an improving housing sector, a resurgence of the U.S. manufacturing sector, an energy renaissance and relief from policy uncertainty that will have an unlocking effect on business investment.
William G. Sutton, CAE, president of the Foundation and president and CEO of the Equipment Leasing and Finance Association, said: “As projected in our 2013 Annual Outlook, the Q2 Outlook anticipates that 2013 will be a tale of two halves, with sluggish growth in the first half of the year, followed by a pick-up in overall economic activity in the second half of the year. On balance, we expect the positives to outweigh the negatives as businesses begin to feel more confident and ready to invest in capital equipment.”
Highlights from the study include: