Manufacturing Picks Up Across Most Fed Districts on Defense and Data Center Demand
The latest Beige Book report from the Federal Reserve shows that manufacturing activity picked up in 10 of the 12 districts surveyed. The steel industry has noted continued demand from defense work and data-center orders, which were cited as drivers across several regions.
The Cleveland district reported robust manufacturing demand tied to these two areas, while the New York district saw particular strength in manufacturing, and Dallas said growth picked up in the sector. However, input costs remained elevated, with price pressures being notably high in manufacturing and construction across multiple districts.
Energy, transportation, and raw materials all rose, with metals and petrochemicals singled out as notable contributors to these increases. The Cleveland district reported robust non-labor costs for a 10th straight period, while tariff pressure continued to be felt, limiting the ability of firms to pass on higher input costs to customers.