Economic and Material Handling Outlook Remains Positive
Article from MHI Solutions Magazine
Some of the biggest risks to the 2025 economic and material handling outlooks evaporated in late 2024 with a swift and decisive outcome of the U.S. presidential election that removed the most significant risks to uncertainty and potential economic and societal disruption. With the recent end of the first quarter of 2025 under a new presidential administration, the economic picture is unfolding largely as anticipated, though not without surprises.
The expectations previously shared are still part of our base case scenario for moderate growth, including easing inflation, slowing job gains and ongoing geopolitical risks. While some of these areas have offered promising developments, challenges remain significant—and geopolitical surprises and kinetic conflict risks could upend an otherwise positive outlook.
U.S. Economic Growth Outlook
The U.S. economy has been growing, although we still expect GDP growth for 2025 is likely to be at a slower pace than in 2024. This moderation reflects the lagged impact of high interest rates in previous years and dampened capital investment that is typical in a high‑rate environment. The consumer is likely to support GDP growth and e‑commerce, while lower interest rates are likely to support material handling and supply chains in the months ahead…
