Cleveland Fed: Business activity up, but high fuel costs are increasing prices, hurting consumers

The Federal Reserve Bank of Cleveland reported moderate business activity growth over the past 1.5 months, driven by data center construction and manufacturing demand. However, high fuel and petroleum product prices are increasing costs for businesses and reducing consumer spending, particularly affecting low-income households. The report also noted rising electricity, insurance, software, and food costs, with geopolitical tensions and low global oil reserves complicating prospects for price declines.