1st Quarter 2024 Brief – The Future of the Economy

Posted: Apr. 01st, 2024 at 2:20 pm under General

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In the first quarter of 2024, we saw slowing economic growth with the unemployment rate rising slightly to 3.9%, a fairly mild increase compared to previous recent U.S. economic slowdowns. Although there is still a labor shortage due to open jobs, there has been a steady decline in employees leaving their current jobs, creating some stability in what has been an unpredictable market in the past few years.

In March, the Federal Reserve announced interest rates would remain unchanged for now. In fact, the Federal Reserve will likely even begin cutting interest rates this year, which will help boost consumer spending on housing and motor vehicles, and will help spur growth in business loans. Also, business sentiment ought to improve as a result of the Fed’s rate-cutting signal, encouraging more business managers to start purchasing equipment and making plans for expansion. After a strong fourth-quarter GDP growth rate of 3.2%, quarterly growth is likely to slow to an average of 2.0% this year, which is roughly in line with the economy’s potential growth rate. Business spending will likely stay at the current modest rate because of higher interest rates and tight bank lending standards.

The labor market remains tight currently and imbalances continue to persist in the ongoing recovery efforts. Labor turnover data released in February showed that there were 1.9 job openings for every person looking for one.

Locally in Atlanta, job growth is also expected to slow in 2024; however, the forecast for recession in Georgia is lower than the national average.

We have now arrived in a world closely resembling Doc’s DeLorean ride. Previous roadmaps are becoming inconsequential as we navigate 2024 and into the future. So how do we best prepare our businesses for the future?

Interested in reading the entire 1st Quarter 2024 brief?
https://indd.adobe.com/view/a95dbc0a-bc94-4f56-ae14-35b8bdd3cd74