The Equipment Leasing & Finance Foundation forecasts 2.2% growth in equipment and software investment, and 1.7% growth in GDP next year.
Washington, DC – The U.S. economy likely averted a recession in 2023 and appears to be on track for a “soft landing” in 2024, according to the 2024 Equipment Leasing & Finance U.S. Economic Outlook. Real equipment and software investment growth is projected to be 2.2% next year — slightly slower than the growth rate experienced over the last 12 months — with stronger investment activity expected in the latter half of the year. The report, which was prepared by Keybridge and released today by the Equipment Leasing & Finance Foundation, also forecasts real GDP growth to be 1.7% in 2024, down from an estimated 2.4% in 2023.
The Foundation’s report is focused on the $1.16 trillion equipment leasing and finance industry and highlights key trends in equipment investment, placing them in the context of the broader U.S. economic climate.
Zack Marsh, CLFP, Foundation Chair and SVP, Accounting and Analysis, AP Equipment Financing, said, “The Foundation’s annual outlook demonstrates that the economy has thus far managed to ‘thread the needle’ by maintaining solid growth in the face of higher interest rates while inflation returns to more acceptable levels. However, it also reveals that we’re not out of the woods yet, and a recession is still possible during the first half of the year. Overall, while breakout growth in equipment and software investment looks unlikely in 2024, the prospect of lower interest rates and acceptable inflation levels should keep the industry on sound footing.”
Highlights from the 2024 Outlook include:
The Foundation-Keybridge U.S. Equipment & Software Investment Momentum Monitor, which is released in conjunction with the Economic Outlook, tracks 12 equipment and software investment verticals. In addition, the Momentum Monitor Sector Matrix provides a customized data visualization of current values of each of the 12 verticals based on recent momentum and historical strength. This month four verticals are expanding, none are peaking, five are recovering, and three are weakening. Over the next three to six months the Foundation expects the following trends to materialize on a year-over-year basis:
The Foundation produces the Equipment Leasing & Finance U.S. Economic Outlook report in partnership with economic and public policy consulting firm Keybridge Research. The annual economic forecast provides the U.S. macroeconomic outlook, credit market conditions, and key economic indicators. The report will be updated quarterly throughout 2024.
Download the full report at https://www.leasefoundation.org/industry-resources/u-s-economic-outlook/.
Download the Momentum Monitor at https://www.leasefoundation.org/industry-resources/momentum-monitor/.
All Foundation studies are available for free download from the Foundation’s online library at http://store.leasefoundation.org/.
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The Equipment Leasing & Finance Foundation is a 501c3 non-profit organization that propels the equipment finance sector—and its people—forward through industry-specific knowledge, intelligence, and student talent development programs that contribute to industry innovation, individual careers, and the advancement of the equipment leasing and finance industry. The Foundation is funded through charitable individual and corporate donations. Learn more at www.leasefoundation.org.
Media Contact: Kelli Nienaber, knienaber@leasefoundation.org
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