ERA reduces European rental growth forecasts

The European Rental Association (ERA) has revised downwards its growth forecasts for Europe's equipment rental industry in the face of continued economic uncertainty in the Eurozone area.

Last November the association forecast European rental growth of 4.0% for 2012 followed by 3.8% in 2013, but it now thinks that growth this year will be much more modest at 1.5%, with 2013 downgraded to 3.5%.

The updated figures were presented at the ERA's annual convention in Oslo by Marianne Chalcraft of Lavendon Group, who is chair of the ERA's statistics committee.

Ms Chalcraft said the ERA and its consultants, IHS Global Insight, had downgraded the 2012 estimates for 11 of the 12 countries for which it calculates figures, with only Germany's forecast being increased.

The German growth forecast for 2012 has increased from 5.1% to 5.8%. The forecast for France has fallen from 3.7% to 1.3%; in the UK from 4.6% to 2.9%; in Italy from 1.1% to -4.0% and in the Netherlands from 5.8% to 1.3%.

The association is also forecasting an even worse year for Spain, with the rental sector contracting by 14.9%, which compares to the -8.7% estimate given in November last year.

Ms Chalcraft said the next report, due in October, would include a detailed study on the Swedish market - trying to reconcile the differences between ERA estimates and those of the Swedish Rental Association. In addition, Russia will be included in the study for the first time.