Q3 Economic Outlook Positive for Equipment Investment Growth

The Q3 2013 equipment leasing and finance United States economic outlook report, which forecasts equipment investment and capital spending in the United States, has revised its projected growth estimate from 5.6 percent in its Q2 Outlook to 4.8 percent in 2013. However, this needn’t appear to be as disconcerting as it looks.

"In the Q3 U.S. Economic Outlook, we have adjusted our equipment investment growth projection to reflect the current environment,” noted William G. Sutton, CAE, president of the foundation and president and CEO, equipment leasing and finance association.

The adjustment was made keeping in mind the decreased growth in investment in Q1 and Q2, but strong underlying economic fundamentals and reduced policy uncertainty will apparently keep growth steady in the second half of 2013 across almost all verticals. That implies positive growth during Q3.

Although the U.S. economy is apparently at its best since the recession in 2008-09, current growth continues to be impeded by weak global growth, high oil prices, fiscal consolidation and the like, but hopefully not for long.

This is because computer and software investment is expected to increase, investment in construction equipment is showing rapid growth, credit market conditions continue to improve, transportation equipment investment is likely to gain a little momentum, while agricultural and industrial investment will experience average growth. Overall, the current environment seems to strike a positive note.

Further, according to the equipment leasing and finance foundation, the housing market and auto sales are improving, unemployment is decreasing, more credit is available, there is an energy renaissance – signs that things are picking up across all sectors. This augurs well for the current and upcoming quarters.

“With the housing and energy sectors continuing to hold strong, we still expect the second half of the year to show growth, albeit more modestly than originally anticipated," commented Sutton.

In essence, the U.S. economy is expected to generate positive but modest growth in 2013 similar to 2012, indicating that the economic growth could well be sustained even in 2014.