09/13/2024 | News release | Distributed by Public on 09/13/2024 11:46
When it comes to the short-to-medium-term expectations for thefuture of the equipmentmanufacturing industry and the agricultureand constructionmarkets itserves,it seems safe to say opinions are mixed.
While inflation seems to have subsided without major increase in unemployment,there remainconcerns the U.S. economy is still at risk of a recessionif the Federal Reserve does not react to recent data and cutits rate as marketexpects.The numbers aren'tall bad, however. Most notably,global construction growth is expected in 2024. While it will likely bemore subdued this year than in 2023(when the industry saw growthof more than 4%), worldwide output is being bolstered in large part by the health of the Chinese construction marketas well as the robust growth in the U.S. energy, utilities, and infrastructureconstruction sectors.
As for agriculture, there has been asteady decline in optimismamong ag equipment manufacturers,with regardto ag equipment demand as evident in AEM's second-quarter Industry Conditions Survey.The main reason behind this sentiment is the increased possibilitythe U.S. farm economy isheadedtoward another year of weak returns,as supply continues to outpacedemand.Furthermore, recent agequipment sales data for all agequipment categories have all trended downward and are lower year-over-year.
2023 was an uneven year for both the U.S. and global economies, which negatively impacted AEM members and particularly the ag market. This year isn'tplaying out much better(in spite ofsome positive indicators on the construction side), and challengeswill continue to presentthemselves toAEM members and underlying marketsfor the remainderof 2024 and beyond.
In addition to its quarterly Equipment Market Outlook Webinars, AEM continues to offer a wide range of other market data products. For more information,contact your Account Success Advisor.
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