Chicago Fed: Activity Edges Higher; Prices Rise


   
Miguel E. Andujar
DTN Refined Fuels Market Reporter

   DAVENPORT, FL (DTN) -- Economic activity in the Federal Reserve's Seventh 
District, which includes Illinois, Indiana, Michigan, Wisconsin and Iowa, 
increased slightly in recent weeks, according to the April Beige Book released 
by the Federal Reserve Bank of Chicago.

   Manufacturing demand rose modestly in late February and March, with gains 
reported across chemicals, plastics, and primary metals, supported in part by 
demand from the pharmaceutical, semiconductor, and defense sectors. Fabricated 
metals and machinery sales also increased slightly, while heavy truck 
production grew moderately, and auto output edged lower.

   According to the same report, business spending was flat overall during the 
reporting period, with capital expenditure holding steady but expected to 
increase slightly over the coming year. Demand for truck transportation was 
steady, while freight rates moved higher as rising fuel costs were passed 
through to customers.

   In the agricultural sector, contacts said expectations for 2026 farm income 
declined, as input costs, including fertilizers and fuel, rose faster than 
agricultural product prices. Crop prices increased during the reporting period, 
with gains in corn, soybeans, and wheat, alongside higher livestock prices.

   Across the district, contacts reported moderate increases in producer 
prices, driven by higher costs for raw materials, energy, and shipping, with 
some attributing the rise to the ongoing conflict in the Middle East. Wages 
increased modestly, while benefits' cost rose at a moderate pace.




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