Growth in transportation equipment investment is likely to moderate but should stay above 15 percent over the next three to six months, says the Equipment and Leasing Foundation in a quarterly update report.
Included in projected trends for equipment investment in an update to its 2012 Equipment Leasing and Finance U.S. Economic Outlook, the Foundation said construction equipment investment is likely to grow at a relatively slow pace of 1 to 3 percent while industrial equipment investment growth should grow moderately from 5 to 9 percent.
Agriculture equipment investment was estimated to decrease by from 5 to 10 percent while medical equipment was projected to grow at a “slow pace” of 1 to 2 percent.
Credit market conditions remain in flux, the report noted, and remains “highly reactive” to Federal Reserve policy and European economic factors.
“It is expected that tensions in global credit markets will ease somewhat and U.S. interest rates should marginally increase next year as the ‘flight to quality’ trend slowly unwinds,” the Foundation said, adding that the “macro outlook for 2012 has not changed materially.
“Real GDP growth is holding at 2.2 percent and inflation expectations dropped from 2.3 percent to 2.1 percent.”
The Trucker staff can be reached to comment on this article at email@example.com.
Find more news and analysis from The Trucker, and share your thoughts, on Facebook.