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Improved Equipment, Software Spending Forecast in 201712-26-16 | Economic News

Improved Equipment, Software Spending Forecast in 2017

Due Mainly to Executives' Confidence Level Climbing

Equipment and software investment spending is "on track" to expand by 3.0 percent in 2017, a welcome bit of information considering a contraction is likely in 2016, the Equipment Leasing and Finance Foundation said in its annual Economic Outlook.

Now that the election is over and policy decisions are starting to be made in Washington, D.C., the collective confidence level of business leaders is escalating, according to the Equipment Leasing and Finance Foundation's annual Economic Outlook.

Ralph Petta, CEO of the nonprofit organization, said: "The cloud of uncertainty hanging over business decisions to invest appears to be lifting," and that corporate executives are also feeling much better about the overall U.S. economy looking ahead.

Equipment and software investment is on track to improve in 2017, the Economic Outlook concludes, with a growth projection of 3.0 percent. This forecast comes in the wake of what likely will be a contraction of investment spending in 2016.

Petta noted that unemployment is slowly dropping, housing prices are improving, and stocks markets are trending ever higher.

"Positive economic developments during the second half of 2016 seem to indicate that GDP is poised for solid, if unspectacular, growth," Petta said. "We are hoping that the spillover effect is a strong equipment finance industry in 2017."

The Economic Outlook focuses on the $1 trillion equipment leasing and finance industry, and looks at key trends in equipment investment, among other factors. The report will be updated quarterly throughout 2017.

"The Equipment Leasing and Finance Foundation is dedicated to inspiring thoughtful innovation and contributing to the betterment of the equipment leasing and finance industry," according to its news release.