AMT Economist: Manufacturing Technology Industry on the Cusp of Sustainable Growth
November 8, 2024Comments
Following this week’s move by the Federal Reserve to slash the federal funds rate by another 25 basis points to a target range of 4.5 to 4.75%, the manufacturing technology industry now may find itself at the beginning of a strong market. So notes Christopher Chidzik, principal economist of AMT–The Association For Manufacturing Technology.
“When we look at orders for manufacturing technology, they seem to have hit bottom in July 2024 and have been trending upward ever since,” Chidzik says. “This is a leading indicator that the growth seen in the economy is on a sustainable path if the Fed can maintain the balance of risks with the (recent) rate cut.
“The recently released economic data and the path of the Fed indicates that the economy has found itself at the onset of an economic soft landing,” he continues. “During the last soft landing, which began in April 1995, orders of manufacturing technology initially fell along with interest rates, only to rebound to record levels by the beginning of 1998. Should our current episode prove to be the same, the manufacturing technology industry may find itself at the beginning of another strong market.”
See also: Association for Manufacturing Technology
Technologies: Management
