Q4 Update to the 2022 Economic Outlook Forecasts 5.9 Percent Expansion in Equipment and Software Investment and 1.8 Percent GDP Growth This Year
Despite early indicators of a modest rebound in equipment and software investment growth in Q3, demand may soften in several end-user markets over the remainder of the year due to high interest rates and expectations for further rate hikes, according to the Q4 update to the 2022 Equipment Leasing & Finance U.S. Economic Outlook. The report released Oct. 27 by the Equipment Leasing & Finance Foundation forecasts equipment and software investment growth of 5.9 percent in 2022, while U.S. GDP growth of 1.8 percent is expected. The Foundation's report is focused on the $1.16 trillion equipment leasing and finance industry and highlights key trends in equipment investment, placing them in the context of the broader U.S. economic climate.
“While many of the factors highlighted in the Foundation’s Q4 Economic Outlook have worsened in recent months, including the U.S. housing sector, the global economic backdrop and Fed actions to control inflation, there are bright spots,” said Nancy Pistorio, Foundation Chair and President of Madison Capital LLC. “The industrial core of the economy continued to hum along in the late summer and early fall, and demand for equipment remains strong despite concerns of a looming recession.”