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More of the New Normal?

BY Carl N. Boccuti
December 31, 2014

The U.S. economy has seen a modest and prolonged recovery following the 2008 Great Recession. According to a 2014 report from TD Economics, investment in equipment fell 31% during the Recession. Although difficult to estimate with certainty, as a result of the decrease in spending during that time, there is considerable cash sitting on the sidelines waiting to be invested in capital expenditures. Yet every year since the Recession, there has been uncertainty hovering over the markets, preventing prudent companies from opening the cash spigot. This uncertainty has taken the form of geo-political unrest, economic malaise and in the United States, the Affordable Care Act (ACA) has added another layer of complexity.

Searching for a Catalyst

The challenge facing the equipment finance industry is in pinpointing when businesses across sectors will reach a level of comfort where they are ready to deploy the cash that has been stockpiled. Will the catalyst be a turnaround in the housing market, increased consumer spending, rising interest rates, more favorable employment numbers or a growing calm within the global markets?

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