Business Spending Forecast

Economic Forecasts

Business Spending Down for the Count

Kiplinger’s latest forecast on business equipment spending

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GDP -2.0% growth in 2020, down from 2.3% in 2019 More »
Jobs Job losses in Q2 and Q3, strong pickup after that More »
Interest rates 10-year T-notes staying below 1.0% in March and April More »
Inflation 1.8% by the end of '20, from 2.3% at end '19 More »
Business spending Down in '20 because of global recession fears More »
Energy Crude trading as low as $25 per barrel More »
Housing Total starts up 3.2% in '20 More »
Retail sales Retail and food service sales, excluding autos and gas, should rise 3.5% in 2020 More »
Trade deficit Widening 6% in ’20 More »

Capital spending is likely in for a prolonged slump because the efforts to contain the coronavirus will also cause economic growth in the world’s advanced economies to slow in 2020. Spending is expected to be down until progress is made against the virus. Trade volumes are likely to drop because of declining demand. Businesses will be reluctant to expand capacity until things look better.

Another drag on business spending is that it looks to be midyear before Boeing will be able to get its grounded 737 Max aircraft certified as safe to return to service. Even when approval is given, the Federal Aviation Administration is requiring that each Max aircraft go through its own inspection process rather than Boeing’s. That is likely to delay the full return of the fleet to at least the second half of 2020.

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See Also: How to Get Your Small-Business Loan Approved


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