Chicago Fed: Economic Activity Edges Up in 7th District

DAVENPORT, FL (DTN) – Economic activity in the Federal Reserve’s Seventh District, which includes Illinois, Indiana, Michigan, Wisconsin and Iowa, rose slightly in recent weeks, according to the February Beige Book released by the Federal Reserve Bank of Chicago on Wednesday (3/4).

Manufacturing demand increased modestly in January and early February, with steel sales rising slightly amid stronger demand tied to data center and energy infrastructure investment. Machinery sales also increased modestly while heavy truck production remained stable, the report said.

According to the same report, demand for truck transportation declined slightly during the reporting period, though one contact noted that reduced capacity from winter storms pushed freight rates higher. Business spending was flat overall, while capital expenditures increased slightly and contacts expected a modest rise in expenditures over the coming year.

In the agricultural sector, contacts said farm income in 2026 is expected to be similar to 2025. Producers continued to face high input costs, particularly fertilizers, while crop prices increased slightly overall as lower corn prices were offset by higher soybean and wheat prices.

Across the district, contacts reported moderate increases in producer prices, including higher costs for raw materials and energy, while wages and benefits costs also rose moderately.