US equipment market confidence trends downwards

Overall, 10% of executives responding said they believe business conditions will improve over the next four months, a decrease from 13.8% in December. Most (70%) believe business conditions will remain the same over the next four months, an increase from 65.5% the previous month.

Despite the current political turmoil in the White House, with the stand-off over the federal shut-down, the majority of survey respondents (80%) believe demand will “remain the same” during the same four-month time period, an increase from 79.3% the previous month. Fewer (16.7%) believe demand will decline, down from 17.2% who believed so in December.

Just over one-third (36.7%) of the leadership evaluate the current US economy as “excellent,” a decrease from 41.4% in December. Two thirds (63.3%) evaluate the economy as “fair”, an increase from 58.6% last month.

Half (50%) of survey respondents indicate they believe the US economy will stay the same over the next six months, a decrease from 53.6% the previous month. Currently, 40% believe economic conditions in the US will worsen over the next six months, an increase from 35.7% in December.

Valerie Hayes Jester, president, Brandywine Capital Associates, said: “Businesses seem more cautious to continue expansion until the environment in Washington and the stock market becomes more stable. The government shutdown continues to emphasize the incredible polarization that exists in our government. This type of environment makes it difficult to consider investment in equipment.”