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    1. Industry News

    Equipment Investment Up in 2024: ELFF

    Oct. 23, 2024
    Investment in construction equipment down 27% in Q3.
    equipment leasing & finance foundation
    equipment leasing & finance foundation logo

    By: Equipment Leasing & Finance Association 

    Investment growth in equipment and software is projected to be 4.4% in 2024, according to the updated 2024 Equipment Leasing & Finance U.S. Economic Outlook. This will be slightly above the growth rate of the past 12 months, according to the report’s publisher, Equipment Leasing & Finance Foundation.

    Investment in construction equipment will continue to contract, according to the group. Investment fell 27% (annualized) in Q3 2024 and is now 8.1% below its year-ago level. The Construction Machinery Momentum Index increased from 91.0 to 93.7 in November. The Index’s current position and recent movement suggests annual investment growth in construction machinery will remain muted over the next two quarters.

    The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor tracks 12 equipment and software investment verticals. 

    Equipment and software investment bounced back in Q2 after three consecutive weak quarters, expanding by a strong 7.0% (annualized). Aircraft investment was primarily responsible for the improvement, along with information processing equipment, while industrial equipment contracted modestly.

    “The Foundation’s Q4 Outlook continues to support a soft-landing scenario and provides optimism for 2025 investment activity," said Leigh Lytle, president of the Foundation, president & CEO of the Equipment Leasing and Finance Association, in a statement. "The U.S. economy has been impressively resilient but heightened political and economic uncertainty, as well as weather-related business interruptions, are likely to slow investment growth in Q4. We are optimistic that activity will remain strong in 2025, however, as Fed rate cuts start taking effect and election-related uncertainty abates. The Monthly Confidence Index for the Equipment Finance Industry agrees with Q4 Outlook findings, holding steady in October at its highest level since 2022.”