The Equipment Leasing & Finance Foundation has a positive outlook for the third quarter of 2017, with a forecast of 3.6% expansion and 2017 growth expected to eclipse 2016.
"Stronger-than-expected first quarter capital investment points to a more robust forecast for the year," said Ralph Petta, the association's president, and president and CEO of the Equipment Leasing and Finance Association. "This is borne out not only by industry performance metrics, but also by anecdotal reports from leasing and finance executives in a variety of key industry sectors."
The report predicts that equipment and software investment should continue to bounce back from a lackluster 2016 after a solid start in the first quarter of 2017, driven by overall improvements in business confidence and a more positive outlook for the industrial sector.
The Foundation’s report, 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. The report will be updated quarterly throughout 2017.
The labor market remains strong, although wage growth continues to lag compared to prior economic recoveries. Improved global growth prospects and sustained business and consumer confidence should help to drive economic growth through the remainder of the year, but ongoing uncertainty regarding key federal policy initiatives present significant headwinds. The majority of equipment verticals are on an upswing and should expand moderately this year:
- Agriculture Machinery investment may grow modestly on a year-over-year basis over the next two quarters.
- Construction Machinery investment growth should improve somewhat over the next three to six months.
- Materials Handling Equipment investment will likely improve over the next three to six months.
- All Other Industrial Equipment investment should maintain a slow growth trajectory over the next three to six months.
- Medical Equipment investment growth is likely to weaken over the next three to six months.
- Mining & Oilfield Machinery investment growth should continue a strong recovery over the next three to six months.
- Aircraft investment growth may decelerate over the next three to six months.
- Ships & Boats investment growth is expected to strengthen over the next three to six months.
- Railroad Equipment investment growth should continue to improve over the next three to six months.
- Trucks investment growth is poised for a resurgence over the next two quarters.
- Computers investment growth is set to improve over next three to six months.
- Software investment growth should remain steady over the next three to six months.
To get the full Q3 outlook, visit here: