2024 Economic and Industry Trends

Economic and Industry Optimism Despite Significant Risks

The post-pandemic U.S. economy continued to be resilient in 2023, defying expectations of recession and setting the stage for a possible soft landing as inflation continues to ease. However, economists and market watchers expect this momentum to fade as we enter 2024.

As the U.S. economy begins to slow in 2024, market participants and watchers are waiting for signals to show inflation has curbed, creating a path for the Federal Reserve to begin cutting interest rates following the steepest increase in decades. Consumers and corporates over the second half of 2023 have accepted and adjusted to the higher for longer interest rate environment. While economists’ consensus predicts an economic soft landing, geopolitical shocks, concerns over the federal debt and deficit and a potential slowdown in consumer spending could cause domestic and global economies to enter into a mild recession.

Despite these economic risks, the electric cooperative network continues to be well prepared to navigate these conditions and take advantage of increasing investment in capacity, continuing the clean energy transition and supporting the evolution of generative artificial intelligence. 

Market and policy analysts expect the private sector to drive further U.S. economic growth as concerns about the U.S. deficit limit additional fiscal stimulus. Despite such limitations, it will still take years for federal outlays from recently signed legislation to permeate the economy. In the meantime, electric cooperatives have the opportunity to benefit from federal funds and programs over the next decade. 

I’m proud to share with you CFC’s second annual Economic and Industry Trends Report that provides interactive insights and analysis from CFC’s expert economic, industry and policy analysts.

Explore the 2024 Economic and Industry Trends Report