The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor consists of indices for 12 equipment and software investment verticals. These indices are designed to identify turning points in their respective investment cycles with a 3 to 6 month lead time for the following verticals:
This month, Keybridge and the Foundation are introducing a new feature to the U.S. Equipment & Software Investment Momentum Monitor. The “Momentum Monitor Sector Matrix” is a new data visualization that provides greater detail on our short-term investment expectations for each equipment vertical, both historically and relative to other verticals. Specifically, the Sector Matrix depicts each vertical on a 2 x 2 matrix based on both Recent Momentum (x-axis) and Historical Strength (y-axis). This capability makes it a better tool than the horizontal bar chart (sometimes called the “heat map”) that traditionally accompanied these reports, as the heat map only reflects the current reading relative to the long-term average. Additional detail on how to read and interpret the new Sector Matrix can be found on page 4 of this report.
The Sector Matrix and heat map will be published concurrently in the February and March Momentum Monitor reports, as well as the first quarterly update to the 2017 Equipment Leasing & Finance U.S. Economic Outlook (which will be published in April). Beginning in May, the heat map will no longer appear in either publication.
The matrix above summarizes the current values of each of the 12 Equipment & Software Investment Momentum Indices based on two factors: Recent Momentum (x-axis) and Historical Strength (y-axis):
The matrix is comprised of four quadrants according to each vertical's recent momentum and historical strength readings. If a vertical is located in the top-left quadrant, its momentum reading is higher than average, but positive movement has slowed (and perhaps reversed) in recent months — suggesting that investment levels may fall over the next 1-2 quarters. Verticals located in the bottom-right quadrant, however, have momentum readings that are below average, but recent movement shows promise — suggesting that investment levels may rise over the next 1-2 quarters. This makes them potentially attractive targets for new leasing and finance opportunities.
The U.S. Equipment and Investment Software Momentum Monitor is published every month but every third month it is included in the quarterly updates to the U.S. Economic Outlook. The Momentum Monitor is now available to download free of charge.
Business leaders require actionable forward-looking intelligence to make strategic decisions. The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor consists of indices for 12 equipment and software verticals . These indices identify key turning points in their respective investment cycles with a 3 to 6 months lead time. Equipment and software investment data comes from the Bureau of Economic Analysis (Nonresidential Private Fixed Investment, chained dollars) and is publicly available on BEA's website on a quarterly basis. The underlying Momentum Monitor data comes from other publicly available sources (published monthly), including BEA and the Census Bureau, and is used to calculate the Momentum Monitor indices.