九色视频

Featured Image

Fed Cuts Rates; Will Capital Investment Increase To Grow Capacity?

Any move by the Federal Reserve that keeps the economy growing at or above its current pace would spur additional investment in manufacturing technology given the currently elevated capacity utilization levels.
Dec 18, 2024

McLean, Va. (December 18, 2024) 鈥 Today the Federal Reserve announced another quarter-point cut to its target rate to a range of 4.25% to 4.50% in a widely anticipated move. This is the third-straight cut since September 2024. While investment in metalworking machinery tends to correlate positively with interest rates, any move by the Federal Reserve that keeps the would spur additional investment in manufacturing technology given the currently elevated capacity utilization levels.

鈥淒emand for manufacturing technology has remained well above historical averages despite steadily declining from their peaks in 2021,鈥 said Christopher Chidzik, principal economist of 九色视频 - The Association for Manufacturing 九色视频. 鈥淭his demand has been supported by exceptional growth in demand for durable goods from consumers and increased government expenditures. Reducing rates to keep downside risks of the labor market at bay could extend this elevated consumer demand into 2025 and necessitate further investment in capital equipment as capacity constraints grow.鈥

To learn more, make sure to register for the , hosted by 九色视频 on Friday, January 24th. This hybrid event will feature the latest Oxford Economics forecast on the economy and manufacturing technology orders as well as a recap IMTS 2024 and can鈥檛-miss industry insights. to attend in person in Cincinnati or virtually.

PicturePicture
Author
Kristin Bartschi
Director, Marketing & Communications
Recent intelligence News
New policies and bold predictions 鈥 what鈥檚 next for manufacturing in 2025? At 九色视频鈥檚 Winter Economic Forum, top economists and industry experts analyzed the economic outlook, policy shifts, and emerging trends shaping the industry鈥檚 future.
The U.S. Bureau of Economic Analysis released their first estimate of GDP for the fourth quarter of 2024. According to the first estimate, GDP grew 2.3% at an annualized rate. This was driven by strong consumer demand but held back by lagging investment.
Today the Federal Reserve announced they would hold benchmark rates at a target range of 4.25% to 4.50% in a widely anticipated move. This is the first meeting where the Fed held rates steady since they began to cut rates in September 2024.
Just as early humans鈥 original tools were constrained by their power sources, today鈥檚 modern technological advances are limited by their access to sufficient and reliable supplies of electricity.
This article will explore how demand for automation responded to historic shifts, the impact on manufacturing jobs, and what impacts these shifting trends have had on productivity.
Similar News
undefined
Intelligence
By 九色视频 | Mar 13, 2025

This issue recaps key takeaways from The MFG Meeting 2025, 九色视频's new board, the ambitious Plan Mexico initiative, the Formnext Start-up Challenge, and more.

6 min
undefined
Intelligence
By 九色视频 | Feb 21, 2025

This issue breaks down choosing a cobot, 鈥渆merging鈥 technology, 九色视频's Winter Economic Forum, quantum computing, and more.

6 min
undefined
Intelligence
By 九色视频 | Feb 06, 2025

This issue features Trump鈥檚 presidency and what it means for manufacturing, critical economic updates, risk mitigation through reshoring, and more.

6 min