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Equipment investment growth to slow during tail end of 2012, foundation says


Equipment investment is on the upswing, but at a slower pace than 2011, according to the Equipment Leasing & Finance Foundation's fourth-quarter update to the Equipment Leasing & Finance U.S. Economic Outlook report.

Projected growth in equipment and software investment for 2012 is 6.7 percent, down from an 11 percent growth rate in 2011. Growth in equipment and software investment slowed to an annualized rate of 4.8 percent in second quarter, down from 5.4 percent in first quarter, according to the foundation.

"The recent slowdown in durable goods shipments indicates that equipment investment continued to lose momentum in Q3, but should remain positive — albeit at a decelerated pace compared to 2011 — through the rest of 2012," according to a press release.

Among the various types of equipment investment the foundation tracks, transportation equipment investment is strong. Although the growth rate is likely to moderate, it should stay above 15 percent during the next three to six months.

"Some sectors, including transportation and construction, continue to improve," said Equipment Leasing & Finance Foundation President and Chief Executive Officer William Sutton in a prepared statement. "However, economic and political uncertainty, especially in the area of tax and budget policy, continues to hamper business investment."


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