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Equipment Investment Expected to Stabilize or Improve in Second Half of 2012

BY ALM Staff
July 30, 2012

The Equipment Leasing & Finance Foundation has released the quarterly update to its 2012 Equipment Leasing & Finance U.S. Economic Outlook. The report, prepared in partnership with the economics and public policy consulting firm Keybridge Research, forecasts equipment investment and capital spending in the United States and evaluates the effects of various related and outside factors in play currently and into the foreseeable future. According to the Q3 Outlook, the projected growth in equipment and software investment for 2012 has slowed to 6.4% down from the previous projection of 6.9%. The recent slowdown in economic activity indicates that equipment investment continued to lose momentum in Q2, but forward-looking indicators suggest growth will stabilize and potentially improve in the second half of the year.

Key Findings

The Q3 Outlook showed that investment for the balance of 2012 is expected to grow, but at a slower rate than previous quarters. The European crisis, the slowdown in emerging markets, and regulatory and political uncertainty remain the potential obstacles.

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