The Equipment Leasing & Finance Foundation has released the Q3 2024 Equipment Leasing & Finance Industry Snapshot, an indispensable information resource for industry participants. Designed for use in executive briefings and presentations, the slide deck summarizes the current conditions and projections for the U.S. economy and equipment finance industry with clear, easy-to-digest charts and short narratives of key trends.
Among the wide range of details in the Q3 2024 Snapshot:
◊ The Foundation projects that the U.S. economy will grow by 2.3%.
- The U.S. economy had another quarter of growth in Q1. Consumer spending, business and residential investment, and government spending drove the expansion, while inventories and trade were net drags.
- Overall, a recession in 2024 remains unlikely, with economist placing the odds of a soft landing (60%-70%) above that of a hard landing. However, a return to strong economic growth is also unlikely.
◊ Economic tailwinds:
- Q1 growth was primarily driven by consumer spending, supported by a boost in government spending and business and residential investment.
◊ Economic headwinds include negative growth in private inventories and net exports.
◊ Equipment and software investment is expected to grow at a 3.7% annualized pace in 2024.
- E&S investment accelerated in Q1, rising 5.1% (annualized) after growing 3.2% in Q4. Elevated interest rates will continue to drag on investment in 2024, and the climate for near-term investment is still modest.
- Business investment grew in Q1, rising 4.4% (annualized). Growth accelerated from 3.7% in the previous quarter.
◊ By equipment type, investment growth in the coming six months appears set to
- Expand in software and computers.
- Decline in medical and mining & oilfield.
◊ New business volume growth reported in ELFA’s Monthly Leasing and Finance Index was down 4% year-over-year in June but remains up 4.1% year-to-date, laying the foundation for healthy, positive growth in 2024.
Prepared by Keybridge Research and updated quarterly, the snapshot is available for free download at https://www.leasefoundation.org/industry-resources/industry-snapshot/