Fitch: Water sector outlook moves to ‘neutral’ from ‘deteriorating’

According to a new sector outlook for 2024 by Fitch Ratings, inflationary pressures will continue to ease for U.S. water utilities in the coming year, and the credit ratings agency has moved its outlook to "neutral" from "deteriorating."

Fitch’s U.S. Water and Sewer Outlook 2024 notes that water utility costs increased more than 3% in 2023 on the back of a 6.5% inflationary increase in 2022. However, the rate of inflation appears to have crescendoed and will likely continue to level off in the coming year.