Data Centers Fuel US Economic Growth Amid Modest Expansion
The US economy has shown modest growth since July, according to the latest edition of the 'Beige Book' by the Federal Reserve. The report highlights that data centers have been a driving force behind this recent growth. Household consumption has also improved slightly, but spending on high-end products has become more sensitive to price variations.
Industrial activity rebounded in most districts, largely driven by orders linked to defense and data centers. The construction sector showed a mixed performance, with residential building declining while non-residential construction generally advanced. Several areas with a strong presence of 'data centers' concentrated the dynamism of the construction sector.
The labor market employment advanced very slightly across the country during the analyzed period, while prices accelerated moderately in most districts, according to the Fed. Looking at the coming months, the forecasts collected in the report are positive, although confidence varies by sector.