Wisconsin Industries Uncertain About What the Next Year Will Bring

Monday, January 15th, 2024 -- 10:01 AM

(Joe Schulz, Wisconsin Public Radio) Inflation has come down noticeably over the last year, while the economy has continued to add new jobs.

But, according to Joe Schulz with Wisconsin Public Radio, there’s still a way to go before interest rates start to come down, leaving Wisconsin industries uncertain about what the next year will bring.

That was the message from a Federal Reserve official who addressed Wisconsin banking and economic development executives during a virtual Midwest Economic Forecast Forum Thursday.

The same day, the federal government released the final consumer price index, or CPI, report examining 2023. From December 2022 to the same month last year, CPI inflation fell from 6.5 percent to 3.4 percent. The CPI also rose by 0.3 percent from November to December.

Ron Feldman, first vice president and chief operating officer at the Federal Reserve Bank of Minneapolis, said the declining rate is encouraging, but it’s still short of the central bank’s goal of bringing inflation down to 2 percent.

In addition to the presentation by Feldman, the Wisconsin Bankers Association also provided a report with 2024 economic outlooks from several state industry associations. Most expressed uncertainty about the economy over the next year.

Kurt Bauer, president of Wisconsin Manufacturers & Commerce, wrote that individual businesses continue to be optimistic about their company’s future but are more pessimistic about the overall economy.

"While this inconsistent view of the economy may just be a sign of troubled times, 2023 was a chaotic year," he wrote. "I would expect more of the same in 2024. There will continue to be contradictory economic information, geo-political conflict, domestic political polarization, and unrest."

Tom Still, president of the Wisconsin Technology Council, offered a more optimistic view, while also acknowledging the uncertainty around the economy. He wrote that Wisconsin is well positioned for growth, as technology and innovation are changing in ways that touch every sector, from agriculture and manufacturing to financial services and tourism.

"All in all, however, it is fair to expect a stronger 2024 for Wisconsin’s economy," Still wrote.

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