McLean, Va. (December 18, 2024) — 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 economy growing at or above its current pace would spur additional investment in manufacturing technology given the currently elevated capacity utilization levels.
“Demand for manufacturing technology has remained well above historical averages despite steadily declining from their peaks in 2021,” said Christopher Chidzik, principal economist of AMT - The Association for Manufacturing Technology. “This 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.”
To learn more, make sure to register for the 2025 Winter Economic Forum, hosted by AMT 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’t-miss industry insights. Register for free to attend in person in Cincinnati or virtually.
