A predicted strong investment in equipment for the remainder of 2025 has helped to prop up the Q4 US Economic Outlook of the Equipment Leasing & Finance Foundation (ELFF), which is forecasting a “solid but moderating”economic performance.

The ELFF says investment in technology equipment and software as well as transportation equipment surged in H1 2025.

“The impact of the AI buildout is difficult to overstate," the industry body observes. "Indeed, investment in information processing equipment contributed more to economic growth than consumer spending from January to June."

However, the ELFF also warns a weakening labour market and rising inflation may “dampen” growth prospects in coming months.

Leigh Lyle, president and CEO of ELFF says: “Equipment and software investment continues to display impressive growth, driving economic activity during a period of heightened uncertainty”.

“Earlier concerns over moderating investment have eased in recent months, contributing to improved industry confidence. 

“Looking ahead, while the economy may slow, the industry remains in a solid position as the combination of the AI buildout, more favourable tax treatment, lower interest rates, and a pro-growth regulatory environment drive investment activity.”

ELFF says business sentiment for the remainder of 2025 is “generally optimistic” with both large and small firms planning capital expenditure in the next few months.

“Overall, the U.S. economy continues to demonstrate resilience to the cross-currents that have characterised the last 10 months, with real GDP expanding 3.8% in Q2 after contracting -0.6% in Q1,” Q4 outlook states. 

“Improvements in consumer demand this summer eased concerns of a near-term economic downturn, and another quarter of solid economic growth appears likely in Q3. 

“At the same time, weak job growth underscores the potential need for the Fed to shore up growth by lowering interest rates over the coming months, despite worries that such a move could fuel more inflation.”