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.

“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,” Zack Marsh, CLFP foundation chair and SVP of accounting and analysis at AP Equipment Financing, said. “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.”