The Equipment Leasing & Finance Foundation released the 2024 Equipment Leasing & Finance Industry Snapshot, an information resource for industry participants. Designed for use in executive briefings and presentations, the presentation slide deck summarizes the current conditions and projections for the U.S. economy and equipment finance industry with charts and short narratives of key trends.
2024 Snapshot Highlights
- The foundation projects that the U.S. economy will grow by 1.7% in 2024.
- The U.S. economy had a remarkably strong Q3/23 of 5.2% SAAR growth, with consumer and government spending boosting growth and investment, while the labor market remained strong.
- Robust economic growth was paired with a steady decline in inflation.
- Economic tailwinds include:
- In Q3, consumer spending expanded 3.6% annualized; government spending grew solidly, driven by an 8.2% annualized federal defense spending; and residential investment grew 6.2% annualized.
- Special topics highlighted in the snapshot include consumer financial stress, the labor market, global conflicts and their impact on energy prices and U.S. businesses, weak global demand, the housing market and manufacturing sector.
- Equipment and software investment is expected to grow at a 2.2% pace in 2024.
- Equipment and software investment was sluggish in Q3/23, rising 0.5% (annualized) after 7% growth in Q2/23.
- Elevated interest rates will continue to drag on investment in 2024, and the climate for near-term investment is still relatively weak.
- New business volume growth reported in the Equipment Leasing and Finance Association’s Monthly Leasing and Finance Index was up 0.7% year to date in October, currently trailing the rate of inflation. After strong growth in early 2023, year-to-date new business volume growth softened in Q2 and Q3 in the face of interest rates and tightening lending standards.
Prepared by Keybridge Research and updated quarterly, the snapshot is available for free here.
