Economic Forecast 2024 Q1: Life Sciences and Manufacturing Industries
The US manufacturing industry is expected to face economic uncertainty, the ongoing shortage of skilled labor, lingering and targeted supply chain disruptions, and new challenges spurred by the need for product innovation to meet company-set net-zero emissions goals in 2024.
However, the industry is expected to continue embracing digital transformation to contribute to a competitive and resilient future and to help tackle ongoing manufacturing challenges.
The US manufacturing industry capitalized on the momentum generated by three significant pieces of legislation that were signed into law in 2021 and 2022, prioritizing rebuilding infrastructure, advancing clean energy initiatives, and building out the domestic semiconductor industry, while also aiming to foster job growth, workforce development, and equity. The investments in semiconductor and clean technology manufacturing are nearly double the commitments made for these sectors throughout 2021, and nearly 20 times the amount allocated in 2019.
Life Sciences Industry: life sciences services companies remain resilient and attractive to investors and strategic buyers in the industry. The demand for clinical research, drug discovery, and manufacturing is increasing, driving investment opportunities. Mergers and acquisitions will play a significant role in the industry, with strong equity investment expected in the coming years. Partnerships will also be critical to the success of life sciences services companies, allowing for the development of advanced manufacturing capabilities and fostering innovative projects.
Macroeconomic Level: The Federal Reserve projects U.S. GDP growth of 1.5% in 2024 Q1 3. The International Monetary Fund (IMF) predicts that global growth will slow from 3.0 percent in 2023 to 2.9 percent in 2024 . Swiss Re Institute expects the US economy to grow by 0.9% in 2024 Q1.
Microeconomic Level: On a microeconomic level, the economic forecast for 2024 Q1 is expected to be influenced by various factors such as consumer spending, business investment, and interest rates. According to The Conference Board, real U.S. consumer spending is expected to drop 1.1% in the first quarter of 2024 and decline 1% in the second quarter annually. The firm said softening consumption, coupled with rising interest rates, will also weigh on U.S. business investment in early 2024.
Please note that these are just predictions and may not be accurate.
