Big Tech AI Investment Gives U.S. Manufacturing a Boost: Fed Beige Book

[Financial News New York = Reporter Lee Byung-chul]Investment in AI infrastructure is emerging as a new growth engine for the U.S. economy. The Federal Reserve said the race by Big Tech companies such as Microsoft, Google, Amazon, and Meta Platforms to build data centers is lifting both manufacturing output and construction activity, helping support the U.S. economic expansion.
In its July Beige Book, released on the 15th local time, the Federal Reserve said manufacturing activity continued to post a modest increase in most regions as companies expanded capital spending, led by AI-related data centers, industrial machinery, and the defense industry.
Construction activity also showed a clear AI-driven boost. The Federal Reserve said construction and real estate markets improved slightly nationwide, while in some regions, new data center projects became a key driver of construction demand.
Recently, hyperscalers such as Microsoft, Google, Amazon, and Meta Platforms have announced massive data center investments worth tens of trillions of won to expand AI services. The ripple effects are spreading across related industries, including semiconductors, power equipment, and construction machinery.
The U.S. economy also maintained a generally modest growth trend. The Federal Reserve said economic activity increased slightly or moderately in 11 of the 12 Federal Reserve Bank districts nationwide, while the remaining district was unchanged.
However, geopolitical risks in the Middle East were cited as a factor weighing on consumer sentiment. The Federal Reserve said higher energy prices following military clashes between the United States and Iran weakened consumers' purchasing power.
The Beige Book is a report on economic conditions compiled by the 12 Federal Reserve Banks based on surveys of companies, financial institutions, and local economic experts. It is used as reference material for monetary policy decisions by the Federal Open Market Committee. This report reflects regional economic trends collected from late May through June ahead of the FOMC meeting scheduled for July 28-29.



pride@fnnews.com Reporter Lee Byung-chul Reporter