The Equipment Leasing & Finance Foundation revised its forecast on US equipment and software investment growth for 2015, lowering it from 5% to 4.1%.
The foundation’s ‘2015 Equipment Leasing & Finance U.S. Economic Outlook’ report predicted that after a slow start to the year, equipment investment will pick up during the second half of 2015.
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According to the report, growth in equipment and software investment slowed from 3.9% year-on-year in Q1 2015 to 1.7 percent in Q2, driven by sharp contractions in energy and railroad investment.
"Overall, a modest pickup in investment is forecast for Q3 and Q4, bringing annual investment growth to 4.1 percent in 2015, down from 6.0 percent in 2014," the foundation wrote.
The foundation expects investment growth to remain solid in construction machinery, aircraft and software, while computer investment is expected to increase moderately over the next three to six months.
William G. Sutton, president of the foundation and president and chief executive officer of the Equipment Leasing and Finance Association (ELFA), said: "The Foundation’s Outlook forecasts that equipment and software investment will pick up over the second half of 2015 after a slow start — although concerns about global economic weakness, renewed political uncertainty, and other potential headwinds are key trends to watch in the coming months. This outlook is consistent with data from the Foundation’s Monthly Confidence Index and ELFA’s Monthly Leasing and Finance Index, which both indicate solid industry performance. Capital spending is expected to outpace GDP growth again this year, and the investments made by U.S. businesses are increasingly reliant on financing solutions."
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