According to the Equipment Leasing & Finance Foundation, in 2017, the U.S. economy is poised to experience moderately strong growth of 2.7%. After a growth pause during the first half of 2016 in which low energy and commodity prices contributed to weak business confidence and investment, the U.S. economy appears to be back on solid footing.
- Credit market conditions are healthy and are not expected to inhibit business investment or the equipment finance industry.
- Struggles for the energy, manufacturing and export sectors posed a major drag on business investment in 2016, but early indicators point to growth of 3.0% in equipment and software investment in 2017.
- The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor, which is included in the report, tracks 12 equipment and software investment verticals. A number of verticals are primed to improve in the first half of 2017.
Over the next three to six months:
- Agriculture machinery investment growth will likely remain negative
- Construction machinery investment growth should improve.
- Materials handling equipment investment growth should remain stable.
- All other industrial equipment investment growth will likely rebound.
- Medical equipment investment growth should remain stable.
- Mining and oil eld machinery investment growth is expected to improve.
- Aircraft investment growth will likely strengthen.
- Ships and boats investment growth is set to improve.
- Railroad equipment investment growth should continue to strengthen.
- Trucks investment growth is poised to accelerate.
- Computers investment growth is likely to improve.
- Software investment growth should continue to strengthen.