Investment in equipment and software in the US is expected to grow by 2.7% in 2016, according to the ‘2016 Equipment Leasing & Finance US Economic Outlook’ study released by the Equipment Leasing and Finance Foundation.
The Foundation lowered its initial forecast of 4.4% growth, which was included in its 2016 Annual Outlook released last December.
Go deeper with GlobalData
It predicted 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.
Ralph Petta, president of the Foundation and president and chief executive officer of the Equipment Leasing and Finance Association, said: "Growth in the volume of financed equipment slowed over the last quarter, reflecting a similar moderate growth pattern in overall equipment and software investment. Low oil prices and weak global demand appear to be largely responsible for business owners’ cautious approach to capital spending. Also, anecdotal and other data point to a slight erosion of portfolio quality, with delinquencies and losses ticking upward."
The Foundation-Keybridge US Equipment & Software Investment Momentum Monitor, which was included in the report, pointed out the anticipated performance of each of the 12 equipment and software investment verticals over the coming months:
– Agriculture machinery investment growth should remain generally weak over the next three to six months.
– Construction machinery investment growth will likely slow further over the next three to six months.
– Materials handling equipment investment growth should remain weak over the next three to six months.
– All other industrial equipment investment growth is likely to slow over the next three to six months.
– Medical equipment investment growth is expected to remain solid over the next three to six months.
– Mining & oilfield machinery investment growth should stay weak over the near term.
– Aircraft investment growth may slow over the next three to six months, although growth is historically volatile.
– Ships & boats investment growth could moderate in the next three to six months.
– Railroad equipment investment growth is likely to remain strongly negative over the next three to six months.
– Trucks investment growth could slow over the next three to six months.
– Computers investment growth is likely to strengthen moderately over the next three to six months.
– Software investment growth is poised to remain solid over the next three to six months.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
