Manufacturers/End Users
June 4, 2026
Beige Book shows broad industrial growth
Written by Laura Miller
Manufacturing picked up in nine of the twelve Federal Reserve districts in May. It was one of the strongest sectors in the Fed’s June 3 Beige Book report.
Steel companies will note steady demand from defense work and data-center construction. Both were cited as drivers of higher orders across several regions.
Input costs rose at a moderate to strong pace, the report said. Energy and logistics prices jumped, tied in part to Middle East tensions. Non-labor costs continued to outpace selling prices, squeezing manufacturers and downstream metal users.
Tariff pressure continued, with firms reporting paying more for imported inputs. They also noted they couldn’t fully pass those increases through. As such, higher duties on metals and metal-containing goods cut into margins.
Automotive demand was reported to be mixed to slightly weaker. The Cleveland district saw a small drop in auto sales. Other regions saw steady but subdued activity as consumers pulled back on big-ticket purchases. Higher fuel and transportation costs added pressure for auto-adjacent manufacturers.
Softer consumer spending and growing uncertainty were flagged by several districts. Despite this, business outlooks for the next six months held steady.
